Epson R220 Print CD question/I'm an idiot...help!

Hi! This is my very first post on this or any forumt. I can’t figure out how to copy/paste my own jpg. image into a new CD document. Someone did one for me once before so I know it can be done…I just don’t know how!

I have a Mac (10.4.11) and every time I try to use the edit feature it’s all grey-ed out. It just won’t let me copy & paste something into the circle! What am I doing wrong? Can someone take me through this process, step-by-step, please? The instructions only show you how to use the lame pre-packaged pictures, not images of your own.

I would be most grateful for any assistance!