Thanks for the help, I figured it out. What I ended doing was creating the layout sketch in the assembly, inserting a component, mating them to the layout and (the step i was missing initially) editing the sketch of the component while in the assembly and relating it to the layout sketch.

I need some more help though. I am trying to get the configurations options to work. So basically, for every time I change the layout sketch, to change the dimensions of the frame I want a new configuration. Is this possible? I have read the solidworks help and it seems that configurations only allow for more or less parts and features, ect. The problem I am having now is that when i change the layout sketch all the configurations are changed to that revision.