howto merge layers

?I'm a real newbie and just trying DraftSight for some simple plans. But following Mark Lyons "?SmartSelect Tip" I don't get what is suppose to happen upon selecting the layer in step 6. For me its not working, the difference I see is in Entity I have only Block Reference, which produces no selection. So I'm using Select in graphics area, but still after step 6 nothing is changed? Help.

Maybe I can explain what I am trying to do... I receive 'machine layout' drawings from which I extract the detail I need in order to plan a factory layout. Since the factory layout is made-up of many 'machines' I need each 'machine' to be consolidated onto one layer in order to simplify all the twisting and turning required to juggle the finial layout plan.

Hope this explanation helps as I'm really stuck.