There was a previous question: How to Insert an Image in to an Ellipse and Hide Overflowing Parts. Dom answered the question and I was using that method successfully. However, now some setting must have been changed accidentally or something because now, using the same method, I get the picture cut out leaving an outline of it instead of placing the picture into the shape. What setting would cause this inversion?
Layer 1 is your shape
Layer 2 is your image (Should be directly above Layer 1)
1) Select layer 2 and press CTRL + Alt + G or CMD + Alt + G to create clipping mask.
OR
2) You can also hold alt and left click between the 2 layers.
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I am using those steps and it has worked fine until recently. When I get to the create clipping mask step it either takes the image away entirely or makes the image a border for a transparent space. The goal is to have an image with rounded edges. – Lisa May Mar 8 '16 at 21:30
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@Lisa May I am not sure what is wrong without seeing your layers panel. I doubt that changing a Photoshop preference would prevent you from doing a clipping mask but you could also reset Photoshop preferences. – AndrewH Mar 8 '16 at 22:12