Started project, selected image, next screen was blank except for outline of where the image should bel

Maybe you didn't applied the right settings .
how to use PrintMaster :

Open PrintMaster by double-clicking on the icon on your desktop
Click "New Project." A window will appear offering you various templates, such as "Scrapbook," "Business Card" and "Certificate."
Click on the template you want to use. If you don't want to use a template, click "Blank Page," then click "Next" at the bottom of the window.
Select your page size from the window that pops up.
Use the "Add" drop-down menu to add various things to your project. From here, you can add graphics, colors and textures. Simply click "Add," then select the appropriate option from the drop-down menu. A new window will appear. Click on what you want to add. Once the graphic is added, you'll be able to drag it to wherever you want it on your page.
Click "Crop Object" from the menu on the left-hand side to remove a part of any graphic. Simply click and drag your mouse over the area to select the area to be cropped.
Use layers to move graphics and text either behind or in front of each other. To do this, click "Layout," "Layer," then "Send to Back" or "Send to Front."
Click "Add or Edit Text" to add various portions of text to your document. Choose a font you would like to use from the list, then type your text into the box provided. Click "OK," then move your text wherever you would like it to be.
Click on "File" then "Print" in order to print your PrintMaster project. You'll be able to select the number of copies as well as the size of paper you want to print on.