Lasso selection will not paste, it snap back to center of photo

I used lasso to select an area, then clicked on Move tool, then copy, then moved the Move cursor to where I want to paste the area. When I select Paste, the copied area appears in the center of the photo, rather than where the Move tool cursor is located.

When I again grab the area (now in the center of the photo) with the Move tool and position it over the area that I want covered, it moves, but as soon as I release the left click button, the area snaps back to the center of the photo.

How do I get a selected area to move to a location?

Russ,
1.Open your image, drag down the layers palette, click on the arrow (upper right), duplicate layer, shut off visibility to background layer.
2. Select with lasso, and you can move selection with the move tool.
3. Alternately, you can can go to Edit>copy, Edit>paste and your selection will be on its own layer (look in palette)
Let us know how you make out.
Ken