Quote:
Originally Posted by dugarner
That's not my mom Judie, wow, I can't see her practicing that! She's athletic, but not like that, unless she's living a double life.  She's an aerobics instructor and has also been a dance instructor at AACC for many years. I thought maybe I recognized your name from around town.
No, I don't think there's a difference between a png/overlay and a png/elements except maybe a subcategory of sorts.
It's confusing, but I think we're thinking along the same lines. I think don't worry so much about the name of the file, but how it would look good used. I think they are the same thing, except when a designer creates an "overlay" and names it that, they might be trying to communicate that it would look best on top of another layer, and maybe blended. But I would say they're absolutely interchangeable.
If that just confuses you more, maybe someone else can step in! 
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Yep, I think you're right on there. A png file is a png file. But they are given the name of element or overlay based on the intended use. An overlay is generally larger in size (to mimic a 12x12 overlay in paper scrapping) although not always.
Don't get hung up on the name. Just use the item as you see fit.