Yes, but Ironsheikh should also learn that you really don't have to flatten
the image in order to clone part of Layer 1 onto Layer 2 (although it sounds
like the Sheikh doesn't think he wants or needs to keep the layers
separate).
In the alternative, Iron, you can go to your Layers window, select Layer 1
(your X image), then go back to the image and use your clone tool to select
the spot on image X where you want to start cloning from (in Windows it's
Alt-click). [If you don't see the window that displays your different
layers, go to Windows >>> Show Layers. You can choose which layer to work
on, by clicking on it.]
Then, go back to the Layers window, select layer 2 (the pasted-in bit); then
return to your image and proceed to clone onto Layer 2.
Like many things in Photoshop, it's easier to do it than to describe it.
When you're happy with the result, you can flatten the image. Until then,
you might find it handy to keep the layers separate, in case you mess up on
Layer 2 or you want to move it a little.
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