Layers are a terrific new addition to Paint Shop Pro 5.0.
and have even more capabilities in Paint Shop Pro 6, 7 and 8.
I've found a lot of uses for them.
Layers can be used to make many buttons that are exactly the same except for the wording on them.
I made each of the buttons below using the same template for the button, and using different words in each layer. I then just selected the template layer and the layer with the word I wanted on the button and did a "File/Save As" and gave the button a name. For the next button, I deselected the layer with the word on it I'd used on the last button and selected a layer with the next word on it and saved that button the same way. If I think I might want to make more buttons of the same style later, I also try to remember to use one layer to record the name of the font and the size font I used so that I won't have to guess about it later.

Layers can be used to experiment with different picture frames for your favorite photographs.
I made each of these picture frames using the same image for the center photo and then saved each separately. The nice thing is that if you save the graphic in the ".psp" format, all the layers are saved and if you want to use that style or frame again, you can go back and select the layers you want to use.

One of my favorite uses is to put silly effects into perfectly normal photographs.
Start with a normal photograph like this one. It will have just one layer, the background.

Next, let's add a hat (or two).

Now maybe a couple of ties and some eyewear.

And then - just a couple of finishing touches . . .

And a frame to finish it.