I am not a PSE user, so I am not very familiar with all the ins and outs of it.
I did learn from you guys that it doesn't play nice with grouped layers, unless you have a bag of tricks and use them on it :)
Last week in a nice note, Greg Holley also shared a little gem.
"[...] On a technical note, I wanted to share about using Elements with your templates. I was using your rep card templates and they had some grouped layers. PS Elements by itself will not ungroup layers. However, there is a program called Elements + that will allow you to ungroup them in Elements. The program costs $12.00 and adds many other functions to Elements. I hope this might help someone else."
I am positive it will Greg! Thanks for sharing this! :)
Here is a link where you can learn more about Elements + and also buy this handy add-on.