Hi [USER=144540]@John BkNY[/USER]
It would help to see a screenshot of your Layer Panel. You have an excellent description of the first three Layers, yet then you are adding Layers, and it got a bit confusing to me (though I may be easily confused 
)
Here is what I can suggest without the detailed Layer Panel.
First, if you want an Adjustment Layer to affect a portion of the image below, use Layer Mask on the Adjustment Layer (not the pixel Layer below).
Second, if the specific area of Layer(1) that you want to adjust includes some or all of the same regions of the touch-up elements in Layer(2), then that new Adjustment Layer with Layer Mask should be placed above Layer (2).
Offhand, you would not need to duplicate Layer (1) with the approach I mentioned above.
If this seems off, I will wait until you can provide more details, e.g., a Layers Panel screenshot.
Just my suggestion, of course.
John Wheeler
