Hi Karen! Welcome to Designer Digitals

It's great to have you here with us!
Starting with PSE6, the software functionality changed a bit. Dragging an item UP from the bin turns it into a Smart Object (which resizes it and causes it to lose its transparency as well.) You might be getting the "simplify" message because of this. Fortunately, there's an easy workaround: double-clicking the photo to make it the active document (large in the editing window) and then using the Move Tool to drag it down onto the quick page in your bin.
Here are the steps I use with quickpages:
1. Open the quickpage
2. Open the photo
3. Drag the photo down onto the quickpage in the bin.
4. The quickpage will be the active document now, but the photo will be on top. Look in the Layers Palette and drag the photo below the quickpage. Resize/ reposition the photo as needed.
5. If you need to erase a part of the photo, select the photo layer. Get the eraser tool and erase that section of the photo. Or use the Marquee tool to draw out a selection and press Delete or Backspace on the keyboard.
Hope this helps!