Can't move lens flare

I'm trying to create a simple 3-layer banner comprising a background, text, and a lens flare which is sandwiched between the bg and the text. After I create the flare layer it doesn't appear when I right click the banner. It appears in the layer pallet, but not in the banner itself. I can place the flare directly on the bg layer. The problem with that, though, is I can't move it without moving the entire bg. I need to be able to move the flare independently because I want it in a specific position behind the text. What am I doing wrong?

Many thanks.

create the flare on a separate layer by itself

I already have created a layer for the flare. That's the problem. I cannot select the layer when I right click, and selecting the layer in the pallet does nothing.

Screenshot would help, this sounds very strange

create the flare on a separate layer