The Automatic layout mode:

1. Press the Layout Switch toolbar button (or press Command-L) to move it into Automatic mode:
   

   Automatic layout mode.

2. In Automatic layout mode:

   • Images are placed automatically when dropped on the document
   • The layout is automatically adjusted if images are removed from the document
   • You can easily swap the position of images

The Manual layout mode:

1. Press the Layout Switch toolbar button (or press Command-L) to move it into Manual mode:
   

   Manual layout mode.

2. In Manual layout mode:

   • The layout is not adjusted when images are dropped on the document
   • The layout is not adjusted when images are removed from the document
   • You have fine-grained control over the location, size and rotation of the graphic object