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I was just as confused with what you were trying to achieve.... OK I finally got it.....

 

 To create this you need the rectangle shape tool.....

[ATTACH]3616[/ATTACH] 

This layer is positioned below the image layer you wish to "crop".... to turn it into a clipping group - hold down ALT and click the heavy line between the image and the clip mask layer..... you can click and drag the shape anywhere within the layer image to position it in place.