PSE 7.0 - Can't open RAW .CR2 files

I know this question has been asked many times, and I'm not a novice user, but I can't get it to work.  Here are the details:
Windows 7(x64)
Photoshop Elements 7.0
Camera Raw Plugin 5.6.0.148 (old camera raw .8bi file removed, I did not use the 64-bit version of the new Plugin)
Camera:   Canon SX50HS (which is included in the list of supported cameras)
Nothing I've tried has eliminated the "wrong type of file" message when trying to open .cr2 files.
So, then I read that I should get the Adobe DNG converter (v7.2.0.46) and convert the files to DNG format.  OK, I got the converter but it doesn't recognize the .cr2 files in the folder in which they exist.  I read another post which indicated that the DNG converter only worked from the C:\ root directory.  So, I put one of the .cr2 files there, and used that as the folder to "select images to convert".  It began scanning my drive, and found all of the .tif files on the drive, but none of the .cr2 files.  It did not convert any of the .tif files.
I am new to the use of RAW format images, but not to the concept of drivers, plugins, versions, and following installation instructions precisely and have years of professional experience in software (even more frustrating!).  It seems as if there could/should be a plugin update utility that prompts for the camera make/model, verifies that it is compatible, and installs the appropriate software.  I'm sure that the camera information is also embedded somewhere in the image file.
Sorry to beat this poor horse any further, but any insights would be most welcome!

The only option for you is to download this:
<http://www.adobe.com/support/downloads/detail.jsp?ftpID=5519>
Then watch this video:
<http://tinyurl.com/arrqocd>
Good luck and post back.

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