I don't claim to be an expert with PSP (yet) but I've been working with it for awhile now. I think I know what you're trying to do, and I've found something that works for me.
Open your JPG image. Make the canvas size larger if you're expecting to enlarge the image. On the Image menu choose "Canvas Size...", and make it larger than it currently is, by say, twice as much or whatever you want to work with. Click the boxes to Center Horizontally and Vertically.
You might have to click the no-zoom button on the toolbar if your canvas became 1:2 view. This will zoom it back to 1:1.
Now select just the area of the image that was formerly the whole image using the rectangular selection tool. Pull down the Selection menu and pick "Promote to Layer" Then from the same menu, pick "Select None."
Next, on the layer palette (open it if it's not already open), click on the layer that says background to highlight it, and delete it with the delete button (looks like a trash can) that's just above it, because you just want to work with the promoted layer.
Now you can click on the deformation tool (it's the third tool down from the top), and it'll let you deform your image like a vector object. Stretch and skew and rotate at will, that is.
To turn off the deformation tool when you're done with it, you have to click on a different tool (took me awhile to figure that one out!). Then, on the Layer menu, choose "Merge/Merge All (flatten)" to convert back to an image that's composed of only one layer.
Hope that helps.
--Jody Hall--