Frame7.1 wont import Photoshop CS5.1 .jpg file

Question

I am (reluctantly) in the process of migrating from Windows XP +
Photoshop CS V8.0 to Windows 7/64bit + Photoshop CS5.1.
Framemaker 7.1 works well in both XP and W7/64, including generating
PDFs. I can import .jpg files written by Photoshop CS. Etc.
... except...
If I open a known-good (already imported) .jpg file using Photoshop
CS5.1 and, without making any changes, save it, Framemaker can no
longer import it, neither directly or by reference:
   "The filter encountered an error and could not complete the
    translation".
It appears the Photoshop CS5.1 writes a different .jpg file format
than Photoshop CS (rhetorical: how can it be acceptable for CS5.1 to
change the format of a basic .jpg file? but I digress...).
Examining the original .jpg file vs. the CS5 .jpg file I find:
- The new file is smaller (79KB vs. 82KB) - note both are small!
- The contents (examined using a binary editor) are quite different.
- Both versions display identically, in both CS and CS5.1 and in
   various viewers.
I have tried various experiments trying to understand this and have
had no luck. I can open the CS5 .jpg file in Photoshop CS and save it
again but Framemaker will not open this version either, same error.
This is not a RAM size issue (8GB), swap space issue, or anything else
related to the computer hardware. All SW updates are current, etc.
I have tried importing into a new, default template file, etc.
So, I tried saving as .bmp and the first time I tried to import it
Framemaker died immediately: no stack trace, no error messages, the
Frame process was just gone. After restarting, the 2nd attempt I got a
black rectangle of the correct size, but all black = not usable.
Photoshop CS + Framemaker has worked well for many years, so I know
this is a CS5 issue.
Anyone have any ideas on how to make CS5.1 generate a "standard" .jpg
file?
Anyone have any ideas on how to import CS5.1 images using
Framemaker 7.1?
Please don't advocate upgrading Framemaker to V10... Adobe provides zero
information on migration (from any version) and the last time we did
this cost us many man-months of work to "fix" 14K+ pages in 50+
manuals. We will stay with XP/CS and "eat" the new W7/CS5 system
before we move to FM10.
Thanks
Previously (everything works)
  Windows XP/SP3
  Photoshop CS V8.0
  Framemaker 7.1P116, non-structured
Today:
  Windows 7/64bit SP1
  Photoshop CS5.1
  Framemaker 7.1P116, non-structured

Answer 1

AG: IIRC, the FM7.1 JPG filter only reads the older JFIF header format JPG files, while the CS5 Photoshop and many other applications write EXIF headers in the JPG (yes , the standard evolved).
We also had a problem with JPEG 5 (legacy) vs. JPEG 2000 (newer) encoding, not in FM, but in the rendered PDFs at our print shop. The Xerox engine needed an update to fix that.
Using JPEGs in FM has various considerations, some already mentioned in this thread. But the biggest concern, in my view, is cascading compression damage. JPEG compression is always "lossy", and the artifacts at higher compression, or after successive compressions, are often visually distracting (and may be aggravated if sharpening is also applied). Even at NO compression, there are losses due to the transforms
Unless you are shooting .RAW, your camera is compressing from frame buffer to JPEG. When you re-save from your photo editor, regardless of edits, it gets re-compressed if saved to JPEG. When you render to PDF, it may get both down-samped and re-compressed again depending on PDF settings. If you post-process (optimize or reduce file size) in Acrobat, it can get down-sampled and re-compressed again.
So I shoot JPEG with as little compression as possible (RAW has other considerations). I edit in PhotoShop and save as EPS, which is a very inefficient format space-wise, but is UNcompressed*, and is a very efficient format both performance- and stability-wise in FM. I save the EPS at the resolution desired in the PDF (usually 200 dpi). Yes, it does get (and needs to be) re-compressed during Distill, but we've skipped one needless re-comp, and avoided another down-sample. We don't further optimize in Acrobat post because the images are already optimal.
EPS also supports both RGB and CMYK models, whereas JPEG is strictly RGB (or, beware: indexed color). And EPS is generally unmolested by Mr.Bill's GDI, which is crucial for color-managed CMYK.
* TIFF can also be uncompressed, and CMYK, but can be a performance issue in FM.
The Wiki page for JPEG, btw, is presently vandalized:
"The name "JPEG" stands for Joint Photosaic Experts Group, the name of the committee that created the JPEG standard and also other standards. It was discovered by <likely name of vandal redacted> of the Philippines."