I created an image in a different image editor and it is saved as a .png file. Is there a way to preserve the image I created, because from what I can see Inkscape want’s to treat the image as a copy. I can create a black and white copy of the image or trace around it, but that’s not what I want. I just want to be able to import the .png into Inkscape and to us it as if I originally created it in inkscape.

You can do that. Drag the png on Inkscape´s app icon and it will pop up an "png bitmap image import"-dialog where you can check Import Type/Image DPI and Image Rendering Mode.

I appreciate the help. It still won't work for me though. If I color in a portion of the image and drag the original image away from the canvas, then the area I color filled stays in the same location, and the original image is drug away as if it is a copy and not the actual image I need to edit.

My options are below (Where 0 represents a radio button), however I can't find any combination of these that will convert my .png image to a vector format. 

Image Import Type               0    Embed   

                                             0    Link

Image DPI                            0     From File

                                             0     Default import resolution

Image Rendering Mode       0     None (Auto)
                                             0     Smooth (Optimize Quality)
                                             0     Blocky (Optimize Speed)

Inkscape is not a bitmap/paint program, i.e., it cannot selectively alter pixel colors.  Inkscape is a native svg vector illustrator.

GIMP can edit bitmaps.  Gimp is like Adobe Photoshop, whereas Inkscape is like Adobe Illustrator.

Some programs like Corel and Affinity have vector and bitmap editing functions.

http://tavmjong.free.fr/INKSCAPE/MANUAL/html/Introduction-VectorGraphics.html

I absolutely love Inkscape, it's a great product. don't get me wrong. I am just really trying to learn more and more each day. So thanks for the info Tyler. Polygon if you disagree with Tyler because you have an alternate way, then please let me know. You two are awesome, thanks !

It´s a bit theoretically. I have no clue what you want to do with the bitmap image in Inkscape. Inkscape has a huge arsenal of tools for raster graphics. Depends on your needs.