External editing in Photoshop

I recently switched over to Lightroom (from Bridge). There is one issue that's really annoying me. When I want to edit a file in Photoshop and then save the file, PS now automatically saves the file back to the folder the CR2 was launched from and names the file "filename-Edit.psd". I don't want this. How do I alter this? I have been using Bridge to edit files for years and PS has always allowed me to save my edits in the folder I want with the filename I want. I want to be able to choose the filename and location for each file.
I tried saving using Save As and this initially works when the file is first saved, but upon hitting Save a second time the saved name I chose reverts to "filename-Edit.psd" and the new file is saved back to the wrong folder. The version I created is no longer updated.
Is my only option to rename all the -Edit files in Lightroom and relocate them to the proper filename after I'm finished? This is a lot of extra work and completely unncessary. Does anyone have a good workaround?
Thanks

Thanks for the response, acresofgreen.
Here's what I'm doing:
right-click image, Edit In > Edit in Adobe Photoshop CS4...
File > Save As
Save to destination folder as MyFileName.PSD
(at this point, the file is where I want it named as I want it)
Edit a bit more, File > Save
(file is now showing up in the original folder in Lightroom with Filename-Edit
(my original save still exists, but has not been updated
So at this point I can continue to Save As the file and replace each time to update and preserve filename and location or I can make all the edits and save when needed and then close the file, go into Lightroom, rename the file and move the file to the proper destination.
I am using Lightroom 3.5 with Adobe Photoshop CS4. I don't know if htis is the problem. I had previously been getting an error when opening files out of Lightroom into Photoshop that I had the wrong version of Camera Raw installed (I have 5.7 installed, Lightroom wants me to install 6.5, but that's a Photoshop CS5 release only). I don't know if any of this is related.
I am on Windows XP.
Bob, I have gone through the default settings and there is no option that suits what I need. For instance, I can't change the destination folder in preferences or have it prompt me for a filename.
Mike

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