Illustrator won't link files when I place them - automatically embeds instead

I'm placing psds into illustrator and the option to check 'link' in the import dialog box is greyed out.  I was working with the same file yesterday with no problems.  I can place the psds into the illustrator file,  but they're embedded - not linked.  Any ideas?

There is no import dialog when "Placing".  When you File > Place, make sure the "Link" box is selected.  If ii is grayed-out it probably means you can copy and paste instead, not necessary to "Place".

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