Hey Kent,
in the texture paint section of the tut when you make the stencil I cant see the overlay image, I can paint like you showed but I cant see the pancake Image over it.
Try going to the "Options" tab in toolbar (while in texpaint mode) and look in the "Overlay" section for Texture. That alpha setting is how transparent the stencil is in the viewport: 0 being invisible. The default should be at 33.
Thing is, I've keep it all in default :(
Tried to click "show cursor/texture in viewport" / "don't show overlay during a stroke" on and off, but nothing happened... so sad! maybe I should try it with another computer in mint installed blender.