George, the best approach is to drag the Layers palette out of the palette well and let it 'float' on the desktop below. If you leave it in that position when you close and restart Elements, it should remain there.
#1
Yet another mistake in the Upgrade from v1. Adobe needs me..who the heck they got testing these things ??? There is absolutely nothing wrong with the way PE1 handles the palettes. Ya ya, just dock it...but still, that can be a pain as well ! OK, there was my 2 cents
#2
Oh boy, that sounded bitter didn't it ?? Sorry ;) I need Ray's little green pills. Or are they blue ? I'll take 2 of each please.
#3