Photoshop CS3 image resizing when moved

[thenewbie]

hi all!
I realize this may be a long shot because I'm using CS3 but I really hope someone can help me.

I'm trying to create a page with 2 photos on it. (standard sized 8.5x11 paper). The background is a neutral gray with "Before" and "After" text boxes. Below each text box I'm trying to put a picture. The images are separate jpeg files. Each image is sized correctly to fit in to the field. (for example one image is 6x6 in according to the image size screen.
HOWEVER when I try to duplicate the layer into the 8.5x11 document it resizes to a super small (less than 1 in square) version of the picture. I can't figure it out! I've also tried just dragging the image layer into the other but it does the exact same thing.

Can any one help me?

In case it is relevant, I'm using a Mac.

Thank you in advance.

 

[KoDen]

Can't remember exact name of the tool. But you can put grid on this picture and stretch it. Will have a look later and let you know.

 

[KoDen]

You can use free transform command. Or just press command+t .

 

[RTContent]

More than likely you have your DPI's of the canvas and of the images mismatching. The canvas usually defaults to 300dpi so first check to see what it is (Image - Canvas Size).