Edit in Photoshop Elements 10 question:

Ok, I'm using LR3 and Elements 10. I need to make sure I'm doing this right. Im in LR, and I want to send a DNG file over to Elements. I click Edit with Photoshop Elements, it sends the file over to Elements. I do my edits in Elements, then click Save. It does come back into LR, but its still the PSD and I want it to be in DNG?  Whats the best way to do this?
Is the only way it comes back is either a jpeg or psd? Or should I send files over in TIFF instead of PSD?  And which color space should I be in?
Thanks folks.

Mike,
DNGs actually make the most sense for Raw type images. For rendered images, they're just another container around your rendered image (TIFF, JPG, ...).
In order to pass an image from LR to PSE, LR will always create a rendered derivate file of the Raw/DNG photo (either TIFF or PSD), and pass the rendered image file it to PSE. Upon return from PSE, the rendered image is updated in LR, but stays in the same file format.
Of course you can convert the TIFF/PSD to DNG after return using LR's conversion (Library -> Convert Photo to DNG), but I cannot really see a benefit in doing that.
There is no option of passing a JPEG to PSE using "Edit in" and receiving the updated version automatically in LR. If you want to work with JPEGs (which I don't recommend because of compression issues), you'd have to save the image as JPEG in PSE and re-import it into LR manually.
TIFF vs. PSD
These days (with TIFF supporting layers), there is no advantage of using PSD over TIFF anymore, and TIFF is a more common format than PSD. So I believe most people are using TIFFs to be passed to external applications.
Color Space
You want to pass as big a color space to external editors as possible. This would be ProPhotoRGB for LR.
BUT, as quite a few functions are not available in PSE when using a 16-Bit image (i.e. cloning), I only pass 8-Bit TIFFs to PSE. Using ProPhotoRGB in a 8-Bit image - as far as I understand it - can have some disadvantages for image quality. For this reason I'm passing 8-Bit TIFFs in AdobeRGB (which is smaller than ProPhotoRGB, but bigger than sRGB) to PSE.
Beat

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