I figured it out. The arch option was selected. Thanks anyway.

Actually what it is doing is drawing an arch.

For some reason the ellipses tool is acting erratic. Its impossible to describe what it does. I've tried uninstalling and re installing and the same time happens.

How can I make a custom document that becomes the default document.

I don't think I changed the canvas from the default. I would like to know how to make my own custom default. Thanks

Why when I use the document dialog box and set the background to transparent it shows up white, not checkered. Also when I export the clip art I have created as a .png file into Adobe Premiere Elements 10 it shows up with a white box around it instead of a floating clip art.