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limey,

I was able to recreate the odd cursor behavior you described in OS9.2.2 using PS7.0.1. The way I did it was to open a document, use the oval marquee tool to draw a selection, while the selection was active I made the Clone Stamp tool active and established the target inside the oval selection. When I tried to use the Clone Stamp tool the brush cursor kept blinking...very annoying. I don't know why but the key seemed to be Option + clicking in the active selection and then trying to clone inside the same selection on the same layer. I found several workarounds.

1 .Make the clone tool active and Option click to establish your target first and then draw your marquee and clone away.

2. Duplicate the layer you intend to work on then while your selection is active click your target on the lower of the two but then clone on the upper. After you're through toss out the target layer.

3. Create your selection, save it as an alpha channel, deselect, establish your clone target, load the alpha channel as a selection and clone away.