Cropping .CR2 file

Hi, I'm new to CS6 and I'm having trouble cropping .CR2 files. Basically, I've just found out that I've been editing all of my RAW files as JPGs on CS5, which meant that I've been storing those huge files on my computer, but haven't been using them to their full potential. Now on CS6 I discovered Camera Raw, but I'm a bit confused as to how cropping a .CR2 file works on Camera Raw and on CS6.
If I open my .CR2 on Camera Raw, click 'Open Image' then use the Crop Tool, the image looks incredibly grainy (see below).
However, if I open on Camera Raw and crop it there before clicking 'Open Image', it looks fine (see below). Why is that?
I'm using a 5184 x 3456 px, ISO 400, 43mm, 0 EV, f/5.6, 1/60 .CR2 file and cropping it to 714 x 516 px. The image doesn't look grainy on Preview.
Also, when I open the .CR2 file on Photoshop, the image looks really dull and lifeless compared to when I see it on iPhoto (see below). Is that because the RAW file is stripped of all settings to give me more flexibility when editing it? If so, is there a way to match the settings that I see on iPhoto?
I'm sorry if these are all silly questions, but I would really appreciate the help; I'm tired of having to manually brighten up photos that when I shot, looked good.
Thanks
Izzie

izziegregory wrote:
I'm struggling to find the Resolution field, which in CS5 was near the width and height fields when the crop tool was in use. Do you know how I change the resolution of an image on CS6?
Don't get hung up on the resolution in ppi or dpi.  You really want to concentrate on image size in pixels.  THe more you know the more you find you really don't know much. Here is an article on image size and resolution.  The one bad thing is the guy uses dpi (dots per inch) rather than ppi (pixels per inch) but it really does not make an difference in the message.  http://www.scantips.com/no72dpi.html

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