Several years ago someone posted a question, here on AB, where they wanted to move a picture of their cat next to one of their dog using Photoshop. I've still got the instructions I provided then stored on my PC, so I'll reproduce them for you below. However I can't guarantee that they'll work in Elements V5 because I use a 'full' version of Photoshop. (Photoshop 6). Assuming that they do work you might also need to use the 'Flatten image' command (under 'Layers') at the end of the process:
"Open both the original dog and cat pictures.
Use the lasoo tool to select the cat.
(Right-click and select 'feather' to soften the edge of the selection).
Go to 'Edit' and select 'Copy'.
Now go to the dog picture.
Go to 'Edit' and select 'Paste'.
Use the Move Tool to place the cat in approximately the right position.
Go to 'Edit' and select 'Free Transform'.
Use the handles on the image to re-size it to your requirements. (NB: Unlike resizing images in DTP packages, dragging the corner handles does NOT retain the aspect ratio. To keep the same aspect ratio you must hold down the shift key while dragging)."
Hoping that works in Elements V5
Chris