Edit text layers imported from Photoshop

I am opening a file in Illustrator previously created in Photoshop CS4. It has text and images and was saved as a PSD file. Illustrator shows all of the separate layers but I can no longer edit the text. Is there a way to share files between these two programs and have the text accessible for edit? Should I save the Photoshop file as something else?
Thanks in advance.
Cole

This is not quite true, although the screen shots show a tiff I opened it works the same way with a .psd file. If you have an effect applied to the text it will not be editable but if you do not have an effect then it will be editable as you can see below. You will be able to scale and rotate the text that has an effect applied.
Not editable
Editable (No Effect)
The solution is to apply the effect in Illustrator if possible or link the file by placing it and editing the text in Photoshop
where you can use the Photoshop layer effects.

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