Add the image you georeferenced to the project: [Layer > Add a Raster Layer]
Add landuse data layer to the project [Layer > Add a Vector Layer] and select lus8p1.shp.
Set "toggle overview" for both layers. It will allow you to see the spatial extent and a "preview" of layers in the left bottom corner of applicaton.
Figure 10b: Adding Layers
You should notice that these datasets do not overlay. This is because the datasets are prepared with different projections. Modern GIS systems (including QGIS) allows you to reproject datasets "on the fly". You can think of this operation as a real-time units/projection conversion. You will need to enable the "on-the-fly" projection option and specify projection information for each layer.
Let's enable "on-the-fly" projection and set the default projection for our project. [Settings > Project Properties], then select the Projection tab (See Figure 11 below).
Figure 11: Setting the Projection
Be sure that you check the Enable on the fly projection check-box. Then set a projection for the project. There are at least two ways to do that:
Select projection via the projection tree/list: Projected coordinate system > Univsersal Transv. Mercator > NAD27/UTM zone 18N. Then click the [Ok] button. Please note that this projection setting has a spatial reference ID of 1384. We can use this ID as a shortcut for setting the projection.
Check the (QGIS SRSID) radio button. Then enter 1384 into the search text box and click [Find]. Select this projection from the list and click [Ok].
Now we must specify the projection information for each dataset/layer.
To specify the projection settings for the image, right click on the raster layer in the table of contents (on the left side), select [Properties].
Figure 12: Layer Projection
The "Raster Layer Properties" window will appear.
Figure 13: Raster Properties
Select the [General] tab. To change the projection click on the [Change] button in the "Spatial Reference System" part of the window. The "Layer Projection Selector" window will appear. Use the same steps as we used for defining projection information for the project. (ID 1384, Projected Coordinate Systems > UTM > NAD27/UTM Zone 18N).
Figure 14: Setting Raster Projection
After that, new projection information is shown in "Spatial Reference System" field.
Figure 15: New Raster Projection
Se?ting projection information for the vector layer.
Figure 16: Setting the Vector Projection
At this step, set projection information for the land use layer in the same way that you did for the raster layer, except this time use ID: 1538 or Proejected Coordinate Systems > Lambert Conformal Conic > NAD83/Massachusetts Mainland
The system should be able to "overlay" two datasets. (It should occur automatically, but press the "refresh" button if it doesn't).
Figure 17a: Correctly Projected Layers
Figure 17b: Correctly Projected Layers in QGIS v.0.8.0