Hi John,
You can't save a jpeg to a RAW file. PSD is not RAW. PSD is "PhotoShop Document". So to answer your second question:
Quote:
Originally Posted by gtirman
did i really import a RAW or was it a glorified Jpeg ?
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No. You didn't open a RAW file. Or a jpeg. You converted a RAW file (.CR2) into a PSD file which would then open in CS3.
You've got 2 options. Firstly, we need to know what model of camera it is. Every single model of camera has a different RAW format and it might be that CS3 doesn't support your camera format. Adobe (in their wisdom) don't release updates beyond a certain point for old software so, if you have a newer model camera than CS3 can support, you won't be able to open the .CR2 files into CS3.
If it turns out that CS3 won't support your camera, you can still open your RAW files into it but you will need to convert them to Adobes own Digital Negative (.DNG) format. This
is a RAW format and the converter is free.