Double click on the 'fx' beside the layer. For Photoshop Elements tutorials click the link below:
http://absolute-extra.blogspot.com/
To edit and manipulate pictures, it has most of Photoshop features.
First click on layer with pixels you want to warp (layer can not be background layer, must be regular layer), in Photoshop CS5 and newer go to Edit > Puppet Warp or Edit > Transform > Warp.
It is the bar across the top of Photoshop that has the words: File, Edit, Image, Layer, Select, etc.
double click on it on layers pallete where are letters Background image and accept,this will convert background layer which is not editable by default to normal layer and then you can edit it
After file is converted to what? What you mean by file is converted? If you have file saved in format that supports layers you can edit it.
There are several ways to remove wrinkles in Photoshop Elements: using Healing Brush Tool, Clone Stamp Tool or using Guided Edit. See related links.
Adobe Photoshop would be great for editiing and printing photos, but you may want to consider Adobe Photoshop Elements.
If you are in search of an image editor I would recommend Maya or Photoshop both you have to pay for but are brilliant and are used by professionals, but if you don't have such funds use G.I.M.P. Gimp is free and is similar to Photoshop. To fufill your task Using Photoshop or GIMP you would;Use the first layer as the explosion. Edit it to your liking using various filters and scale it to your preferred size.Go to Layer, New Layer. Then you are able to put your picture on top and edit it.
Open your image in photoshop, then double click on the locked layer in the layers palette and click OK in the window asking you to name the layer. The layer is now unlocked and editable.
Layer effects are linked to the layer contents. When you move or edit the contents of the layer, the same effects are applied to the modified contents. For example, if you apply a drop shadow to a text layer and then add new text, the shadow is added automatically to the new text. A layer style is one or more effects applied to a layer or layer group. You can apply one of the preset styles provided with Photoshop or create a custom style using the Layer Style dialog box. The layer effects icon appears to the right of the layer's name in the Layers panel. You can expand the style in the Layers panel to view or edit the effects that compose the style.
There are several : Photoshop,Corel Paint Shop Pro,Photoshop Elements which are commercial and some free like GIMP and Paint.net
Someone with photoshop skills can edit your scanned image very easily in photoshop.