Cannot place photoshop PSD file

When I try to place a PSD file into Muse I get the following message:
Cannot place file named 'logo.psd'.
Image was saved with Compatibility Mode turned off. Try re-saving in Photoshop with Compatibility Mode enabled before importing.
I'm using a fresh install of Photoshop CS5 with latest updates. When I save my file I get the compatibility mode confirmation box and the option is checked to enable compatibility mode. This happens in 32 and 64 bit versions. If I create a new image and save it I seem to be able to place it in Muse, the problem seems to only be with PSD files originally created on another computer.

Bearfaced,
Not sure how to fix this exact issue, but as a workaround you could always:
Open the .psd in Photoshop
Save as another file type (i.e .png)
Within Muse, File, place the .png
Should give the same result unless I'm missing something, hope this helps
Shaun

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