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I have had PSP for years now, and I love it, but I wanted PSE too, so I just bought that, and I have to say that its so confusing since Im so use to PSP. I can't find the drop shadow. I know exactly where it is on PSP but no clue on PSE. I tried the first tut and and stuck on the drop shadow. How silly! Anyway Im going to mess around with it some more and see what I can figure out.
On the right side of the edit screen, I make sure I am clicked on "Full"
Then, under effects click on "Layer Styles". There should be a drop down menu listing drop shadows, then you just choose what you want and click "apply". If you want to adjust the shadow, double click on the "fx" icon in the layer palette.
Let me know if you have questions about any of that, I am not the best at explaining things!