I have 20 files that have about 40 layers. Each layer has a small photo that is about 1.5"x2.5", and they are place randomly through out the file. I would like to create action that would apply a vignette to the selected layer. Normally to create a vignette I would create and oval with the elliptical marquee, then apply and adjustment layer, then blur the mask, and transform as needed. If I was simply applying this to the whole document, the action would be a snap, but I can't figure out how to create an action that centers the oval on the image/layer that is selected not on the layer used to create the action? I figured out how to center the oval on a layer, but the action will only center it on the layer that was used while creating the action.

Interesting and fun to work on.

See if this action gives you some ideas...
* Download
* Unzip
* Load .atn into Actions palette
* Open one of your 40 layer images
* Duplicate
* Close original file
* Play action "as is" (it will add vignette to top 4 image layers)

.... Let me know if this helps or makes things worse.