Edit in photoshop (Elements 11) grayed out in LR 4.2

I have just installed Photoshop Elements 11 and LR 4.2. For the first time in my experience the edit in photoshop is grayed out. All my NIK software is recognized, only photoshop is grayed out.
I have the external editor set for TIFF, 16-bit.
Any solution?

Try the steps here: http://helpx.adobe.com/x-productkb/multi/edit-photoshop-command-missing-photoshop.html

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