Bug? Camera Raw Smart Object Can't Be Edited

I have a problem where a raw file placed as a smart object can't be re-edited in CS3. Here's how to replicate the problem:
1. Open a JPEG or TIFF as a Smart Object (may happen with other file types).
2. Go to Layer > Smart Objects > New Smart Object via Copy.
3. Double-click the top smart object and make changes in Adobe Camera Raw.
You should now be able to hide/show the top layer (the final)
to see the bottom layer (the original.)
4. Double-click the top smart object layer to see that it properly opens Camera Raw allowing you to make edits (this works for now but will stop working when we encounter the bug in a moment).
5. Save the file and close it.
6. Re-open the file and double-click either of the smart object layers to edit them. Instead of Camera Raw dialog opening, the image in the window changes to the original unedited version. This is a bug and doesn't happen on every image, but it always happens on at least some of my images.
There have been times when it works, but the next time I open the file it stops working. Some of my files allow editing later without problems. Truly weird. Has anyone else had this problem? Is there a workaround?
I have applied all updaters, so that means I am using Photoshop CS3 10.0.1 with Camera 4.4.1 on Mac OS 10.5.2. I have also trashed preferences for Photoshop and Adobe Bridge. I've also Purged the Adobe Camera Raw Cache in the Bridge. This happens on both my Mac Pro (3GB RAM) and MacBook Pro (4GB RAM) so it's not just one machine.
Thanks in advance,
Dan

Hi Daniel,
Stumbled on your post while searching on a similar issue. I'm not sure if I precisely understand yuour problem, but here's my experience when dealing with TIFFs and JPEGs embedded as Smart Objects in CS3...
If the Smart Object layer contains a TIFF or JPEG that has already been edited and saved in Camera Raw (i.e., the embedded file has Camera Raw XMP metadata in its header), then Photoshop will open the Smart Object's contents in Camera Raw... with one provision. You have to make sure that in your Camera Raw preferences, under "JPEG and TIFF Handling", that both boxes are checked for "Always open JPEG/TIFF files with settings using Camera Raw".
If those boxes aren't checked, when you try to edit the contents of a Smart Object layer containing a TIFF or JPEG with Camera Raw settings in its header, instead of opening the embedded file for editing, Photoshop seems to simply revert to displaying the layer without the settings applied. I'm unsure whether this is a bug or intended behavior, but it seems to be one of the symptoms you describe.
On the other hand, if you make a Smart Object layer from a JPEG or TIFF that does not already have Camera Raw settings in its header, Photoshop CS3 will never open that layer's contents in Camera Raw, regardless of what preferences you have checked. Instead, the contents are opened in a separate window as a temporary .psb file. The only way I've found to do Camera Raw editing in these cases is to export the layer, edit the exported file in Raw, and then re-import it via Replace Contents.

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Is there a way to process /batch process the 500 images and have them saved so later when I open them, they open as smart objects. I only fine tune the client "Picks" as they don't order all the 500 images shot. Now if I want to alter the color balance, exposure, etc., I can double click the smart object, go back into camera raw and make any adjustments/ refinements, click OK and it updates the file. This mantain's a higher integrity of the file.
In CR I know I can check the box "open as a smart object", but that only seems to apply if I immediately open the file (or files) and then save them. It is not practical or feasible to select 500 files, open and save them at one time. If I save the Raw file(s) to open later, (as in my above workflow) then it will not open as a smart object.
Another way to ask this question:
Why can't I use the Image Processor in Bridge / CR to process my 500 CR files as Smart Objects?
When in CR I can set the options to process as a SO, but that only will process the open file(s) in CR as SO. Not practical to process 500 files.
I checked on the Adobe Exchange but did not find any scripts or actions that would facilitate this.
Does anyone know if what I'm trying to do is possible and how?
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In an effort to keep this question / answer current, (this question is on listed on two forums) here is an answer from Jeff Schewe from the Photoshop > Mac forum.
31. Jul 29, 2010 3:58 PM in response to: Jeff_N
Re: Camera Raw / smart object ?
Jeff_N wrote:
Jeff S
Any thoughts, suggestions, or can this not be done.
I'm pretty sure it's a bug....when recording the action in CS5, if you change the Workflow Options to open as a Smart Object, ALL the settings are hardcoded into the recorded Open action step. This is wrong...if you open an image and change the Workflow OPtions but DON'T try to open as a Smart Object, the Open action is recorded correctly–only the Workflow Options are recorded and when processed the files properly retain their individual original settings. So, the act of changing the Workflow Options to make a Smart Object is incorrectly hard coding the settings in.

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hi
i have a problem
i tried yesterday the all day to do this , diplicate a raw smart object to normal layer
i mean i open a raw file with camera raw
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Thank you kindly, Michael. I see now that the example I was viewing had done exactly what you describe, writing ACR settings into the SO layer's metadata at the time of embedding. I was only looking at the portion which later accessed those settings using PerLayerMetadata, and I had mistakenly assumed that CS5 was automatically embedding xmp data in this manner, now, when opening or placing a RAW file as a SO.
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This is sort of what I was afraid of. They're in there, somewhere, but I'm having no luck figuring out how to access them.
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Bug? Camera Raw Smart Object Can't Be Edited

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