IPhoto 11 9.4.2 and PSE 9.0.3 crops

I am using iPhoto 11 9.4.2 and PSE 9.0.3.  Whenever I crop an image in PSE and view in iPhoto, the image only shows a maximum zoom to the bottom left corner.  Is there any way to avoid this?  Very frustrating to have to go back and duplicate to view.  Any help would be greatly appreciated.
The thumbnails show just fine, but when I make them larger the actual photo appears for about a second, then goes right to the bottom left corner.
No matter how I slide the zoom in iPhoto, it still keeps going back to the zoomed corner.  This is on EVERY photo cropped in PSE.
Thanks in advance!

Are you using PSE as described here?
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 9 the Saving File preferences should be configured as shown:
I also suggest the Maximize PSD File Compatabilty be set to Always.  In PSE’s General preference pane set the Color Picker to Apple as shown:
Note:  to switch between iPhoto and PS or PSE as the editor of choice Control (right)-click on the thumbnail and select either Edit in iPhoto or Edit in External Editor from the contextual menu.
OT

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