PSE7 question

I'm starting to use PSE 7 now and have run into a problem...I click "new" project, make it 12 x 12" with 300 RGB. Then, when I drag and drop papers onto that background, the papers, which are supposed to be 12x12, only take up a small portion of the white background. Is PSE 7 not recognizing the size of the papers? I'm using ACDSEE to drag and drop if that helps any.

Oops - I mean 300 ppi, not RGB. Sorry.

Got it - nevermind. It's turning my papers into "smart" somethings (can't remember). I just have to drag and drop differently than I'm used to - no biggie.