Just purchased CS4 and Lightroom. CS4 has some funny things going on, or I just need a little a guidance...?

I was working on Pixelated Mosaic Edges | Effects, Tutorials | Photoshop Lab and once I get to applying the ocean ripple effect it does nothing. I tried a reboot, shut down and can not get this filter to apply or work.

I've also noticed that deleting a layer is grayed out and I can't even drag the layer to the trash icon. The layer is NOT locked. I'll post that in a separate thread unless I'm just doing something really stupid...?

I'm on a windows vista 32 bit machine with 4GB RAM, NVIDIA GeForce 7800 GTX

Thanks,
bp