offset filter not wrapping

In Photoshop 7.01 the offset filter has 3 choices in how to handle areas vacated by the offset. None of these are working when used on a layer. When using offset on a layer that is filled (no transparency) the image is offset in the direction designated by the pixel dialog but does not wrap around or repeat edge pixels.

However it will do this properly on the background layer or on a flattened file.

The problem is that your layers have pixels outside the image area,

To remove them, select all and chose crop in the image menu.

The filter should work fine after that