Editing with Photoshop CS3

I have just purchased PSE 8.. I do all my editing usually with Photoshop CS3. I use PSE mainly for the organizer. When I choose Edit with Photoshop, it launches the application but the photo does not open in Photoshop. Nevertheless, there is a banner accross the photo in PSE that says "Edit in Progress". If I close Potoshop, the banner stays there. I have to close PSE to get rid of it. If I choose "Open with Photoshop Elements" it works fine.
That used to work fine with my previous version of PSE 6.0. Any suggestion on what I might be doing wrong?
Thanks.

Hi Majouz,
Sorry I was out of town for a week so couldn't respond. I use CS3 on a Windows XP machine (2GHz Intel, 1 GB RAM).
Can you please see if the photograph filename or the folder path contains any special characters like aprostrophe, ampersand and all? If yes, rename your files / folders and try again.
Let me know if this works for you.
~thandamunda

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