I followed the Video instructions as to how to drag a photo into a box and have it size to fit. However, the photos appear as small thumbnail size photos instead. Photos dropped direct from the finder, iPhoto and Aperture all did the same. When I owned an earlier version a long time ago, I watched an informative video cast showing how to do this and I was able to achieve the result required, although I don't remember doing anything differently to what I did today.
The reason I want this is to place a logo on the edge of a photo frame templet so I can drop photos in the frame and have them resize correctly to go on an auction site I use.