I am a newbie with this stuff so be kind to me eh?

I cant bring CR2 images into my CS3 as a panel keeps popping up"not the right document "
So on doing some homework on this great site i have now uploaded the Adobe Camera Raw plug in 4.1.1.
It still not allow CR2 Raw images!!
First question.....how do i fix this ?
I then remembered that in GIMP i could save a Jpeg to RAW [psd ] so i gave that a try then opened CS3 > dragged and dropped the PSD.....IT OPENED !!!
Second Question: did i really import a RAW or was it a glorified Jpeg ? I couldnt tell in CS3 by looking....all i could see is the image was named PSD.
I need some counselling i think as i'm getting traumatised by this

cheers for any tips..... John