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I'm using this template:

enter image description here (source)

I have my own image that is 1136 * 640: the size of the smart object that depicts the contents of the iPhone 5 screen. When I drop my image onto the smart object, it is 1.5x the normal size (stretched) and I can't use Free Transform, as it's greyed out.

What am I doing wrong?

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When you say "I drop my image onto the smart object", you mean you open your smart object and past your image inside it? –  Yisela May 29 '13 at 1:33
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closed as too localized by KMSTR, Yisela Jun 6 '13 at 4:08

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1 Answer

Are you double clicking on the smart object layer (it is highlighted below)?

enter image description here

double clicking it will open the smart object as so:

enter image description here

I used the template with this image from a search for 1136 x 640:

enter image description here

and my results are this:

enter image description here

works fine for me so I think you are entering in the wrong settings or are mixing up the width x height

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