Hi How2makestuff,
I read through your draft about learning, very thought provoking. You provided lots of interesting ideas to think about. Learning to use these products can definitely take some time, especially if you're just getting started.
Its hard to provide useful instructions for a given process without having some overall understanding of how to use the program in general or your skill level. Since you came with questions about a specific goal, I searched for instructions for that process which I thought might be helpful. I can understand that they might be kind of daunting though if you are just starting out.
These might also be some good resources for learning the basics
Photoshop Elements Help | Getting Started Tutorials
http://www.photoshopelementsuser.com/category/getting-started-editor/
Adobe Photoshop Elements Tutorials, Tips, and Help for Mac or PC
Learn Photoshop Elements | Adobe TV
Best,
- Dave