Pleases help me! Image-> Apply Image doesn't function properly!

Hello! Please help me I am going crazy! I have photoshop CS2 version 9.2 and whenever I go to image -> apply image it merges all of my layers together as one but I want them to all be visible on one layer. Please help! Its not my version because I have Photoshop 7.0 and it still does the same thing! Thanks, Craig.

I'm not seeing that on my computer. What are you doing exactly? What is your source image, etc.?

it merges all of my layers together as one... I want them to all be visible on one layer.

Doesn't that mean the same thing? Are you saying it flattens the file? I am definitely not seeing that here.