Jeff, the misunderstanding might be that there are (at least) two ways of migrating an image from LR>PS. One is what you say: in the Photo Menu>Edit In..... will do what you say. It creates a TIFF or PSD on the fly in the LR catalog, creates a new thumbnail in the LR "ribbon" at the bottom, and the TIFF/PSD in Photoshop, which then opens. You do your edits there, save the file, then revert to LR where everything done in PS is in the new image with all the LR and PS edits preserved. The other way is to simply *Export* an LR file to your hard-drive, in which case it saves a rendered TIFF/PSD according the parameters one sets in prefs for saving them. Then it is a manual process to reimport it into LR if you want to do that. Either route preserves what one has done in both directions, except that TIFF/PSDs reimported to LR whatever the process are flattened versions because LR doesn't support layers, but the layered versions are preserved in PS if one has saved them. Don't know if this helps "tlook" or confuses things further, or is beside the point, but this is my understanding of how these applications cohere, and I do it daily so I THINK I got it right!