Wait.. you have used PS for 8 years and you are working in one layer still? :/ Are you saying this image is flattened and you need to make 200 layers?
The reason i need to do this is i need to bring each of the 200 layers into a Flash animation so that i can create a jigsaw...
It also doesnt sound like you need layers, but you need slices...
IF the pieces are the the same shape "even sections".. this would be quite easy to accomplish using guides.
1) Make a grid as desired using guides.
2) Click the slice tool, in the control panel for it, the last button option : "slice from guides"
3) save for web.. save all slices.
hope that helps.