What I would do, im not expert nor have i read much tutorials or documentation...

What you can do is copy the MK image... then use magic tool and select the inside of the grip... then paste the MK onto the image. It should automatically make the MK image the 2nd layer and have it within the boundrys of the grip. You can also fill the grip with black to go with the background of the MK image (use the color selection tool if the straight up 0 0 0 RGB black doesnt match the MK image black).


Also if your trying to do something and its being weird.... you are probably on a different layer without realizing it.