Can't save files back to iPhoto after editing in Photoshop Elements

Hi
I am tring to edit pictures in Photoshop Elements 2.0. Here are the Steps i am doing
1. Open iPhoto 6.0.4
2. Go to the picture in the slideshow that i am trying to edit
3. Double click the picture to open in an external editor (Photoshop Elements 2.0)
4. Make my changes in PS
5. Try to save file. Save as a JPG I am trying to replace the original file (it is in the modifiled folder)
-- here is the problem
Can not replace the file--I get the message, "you do not have the right privileges."
So I check the permissions on the file. The original jpg file is a read only file, so I change it.
However I get the same error message.
I don't understand. Any help would be greatly appriceated. This is taking all the fun out of editing my images.
Thanks for your help.

ccorbly:
Welcome to the Apple Discussions. By your statement I take it you've setup PSE in iPhoto's preferences as the editor of choice when you double click on a thumbnail, right? That's how it should be.
iPhoto puts the edited version of the file in a separate folder titled Modified. So you don't want to try to force save to the same location as the original file. If you opened the file in PSE as you've stated (this indicated that you've set up iPhoto's preferences to use PSE when you double click on a thumbnail or photo) all you have to do is do a Save as long as the extension has not been changed to .psd. If PSE wants to use that extension then you need to either do a Save As to the desktop and import the new .psd file
OR f
1 - flatten the image
2 - do a normal Save
3 - in the next window select jpg
4 - hit Save
5 - select Replace.
6 - select quality and the format options and hit the OK button.
If you look close you'll see that you're in the Modified folder of the Library and not the Originals folder.
Now if that's what you're doing and you still get the permissions thing, try the following: download and run BatChmod on the iPhoto Library folder with the settings shown here, substituting your account name for mine. You can either type in the path to the folder or just drag the folder into that field.
Do you Twango?

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