Opps! didn't that last step work?..... well... it is because GIMP won't allow you to get rid of the bottom layer as long as it is treated like the bottom layer.....for it to work you must make it transparent, and it will treat it as a normal layer, so...
1. highlight the bottom layer
2. right click it and select "add alpha channel"
3. Now move it up with the up button!
Now it works