Editing Photos in Photoshop Elements

I can't sort out what happens to my photo edits when done in PSE. I am careful to save the file as a .jpg and save it to the same folder. Nonetheless when I look at the photo in iPhoto, I see the unedited version. I've got to believe that his is, "pilot error" but for the life of me I can't find the correction.
I find the file that I want to edit via "file", "open" from PSE, then enter the file number that I see in iPhoto, "information" e.g. img_3405. I edit the file in PSE and save, even getting the "...do you want to replace it?" warning. When I go back to iPhoto, even after close and open, I see the unedited photo. Arrrrrrg!
What do I do (or expect) wrong?
Wayne

save it to the same folder.
Are accessing PSE from within iPhoto or from the Finder? Are you saving with the same file name?
Here are some tips on using PSE from within iPhoto:
Using Photoshop (or Photoshop Elements) as Your Editor of Choice in iPhoto.
1 - select Photoshop as your editor of choice in iPhoto's General Preference Section's under the "Edit photo:" menu.
2 - double click on the thumbnail in iPhoto to open it in Photoshop. When you're finished editing click on the Save button. If you immediately get the JPEG Options window make your selection (Baseline standard seems to be the most compatible jpeg format) and click on the OK button. Your done.
3 - however, if you get the navigation window that indicates that PS wants to save it as a PS formatted file. You'll need to either select JPEG from the menu and save (top image) or click on the desktop in the Navigation window (bottom image) and save it to the desktop for importing as a new photo.
This method will let iPhoto know that the photo has been editied and will update the thumbnail file to reflect the edit..
NOTE: With Photoshop Elements 6 the Saving File preferences should be configured: "On First Save: Save Over Current File". Also I suggest the Maximize PSD File Compatabilty be set to Always.
If you want to use both iPhoto's editing mode and PS without having to go back and forth to the Preference pane, once you've selected PS as your editor of choice, reset the Preferences back to "Open in main window". That will let you either edit in iPhoto (double click on the thumbnail) or in PS (Control-click on the thumbnail and seledt "Edit in external editor" in the Contextual menu). This way you get the best of both worlds
2 - double click on the thumbnail in iPhoto to open it in Photoshop. When you're finished editing click on the Save button. If you immediately get the JPEG Options window make your selection (Baseline standard seems to be the most compatible jpeg format) and click on the OK button. Your done.
3 - however, if you get the navigation window that indicates that PS wants to save it as a PS formatted file. You'll need to either select JPEG from the menu and save (top image) or click on the desktop in the Navigation window (bottom image) and save it to the desktop for importing as a new photo.
This method will let iPhoto know that the photo has been editied and will update the thumbnail file to reflect the edit..

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