I reset the warnings, no change. I have also tried it on my laptop as well as my desktop, same thing. If I make it a DNG it will open it directly but not give the dialog box for editing with the adjustments nor does it open it in camera raw.
Alan, the issue is, you have an older version of Photoshop, and thus ACR than LR. LR4.1 supports your camera ‘natively’, meaning you don’t have to convert to DNG. But ACR in your older version of Photoshop doesn’t. If you had CS6, it would. When you ask LR to ‘
Edit in Photoshop’, it is the currently installed version that uses it’s current version of ACR to render the raw.
You have a couple of options:
1. Upgrade to CS6 (then you have parity between ACR 7 and LR 4).
2. Convert to DNG
3. Use the Export command in LR4 so LR renders the raw to a TIFF or PSD, then open that in the older version of Photoshop.
Using a newer set of rendering instructions (LR4) but forcing an older version of ACR (6) to render into Photoshop isn’t a good idea.