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Ok............

Let's say I want to place this young lady........

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....onto this canvas in my second document........

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.........so I open her image (drag n drop) into the second document, and she's too big! I'm zoomed in too close.

So I hit Cmd/Cntrl + T to enter free transform............but wait, it didn't do anything.

Where in the transform box?

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(big image)

Now to reveal the transform box I hit Cmd/Cntrl + 0 (zero/zed) and there's the transform box!

This is a keyboard shortcut to zoom out to the edges of the transform box.

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Now, all I need to do is transform the image to fit my document.

I hold the shift + the alt/option key (to constrain) and drag one of the corner handles.

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If this is not the problem your experiencing, let us know.