Lightroom and using the Edit in Photoshop CS3 Options

Today, I installed Lightroom v1.1 and Photoshop CS3 v10.0.1 I have an issue...Using Lightroom, I import a photo (JPG) into LR Library. Then, I right-click the photo and select the option to Edit In Photoshop CS3. This opens a window within Lightroom and there are three available options concerning What to Edit. Two Options reference Edit a Copy and One Option references Edit the Original. The two referencing Editing a Copy always says Lightroom cannot prepare the file for editing and that the file cannot be opened. If I select the last option to Edit the Original, that photo is brought into PS CS3 for Editing.
This is also the situation with files TIFF and PSD.
This is also the situation if I use a different Photo Editor other than PS CS3.
I have read the user manual and if I read correctly, the Two Options which do not work should also work. Or does my thinking need correction?
I would appreciate someone helping me with the understanding of this issue.
Thanks.
James

Thanks to you both. I do appreciate your responses. Please keep them coming.
I think Judith has a point.
I believe I should be able to Import a JPG from somewhere (HD, Floppy Drive, CD Drive)into the LR Library and then call upon Photoshop CS3 to Edit that JPG. If I am not incorrect, when reading the Lightroom Documentation, I see where this action is supported.
The action is: Right-Click a JPG (also TIF and PSD as well) in the LR Libary. From the menu presented, select Edit in the Adobe Photoshop CS3. A new Window appears from which to select either of two Edit a Copy Actions (with LR adjustments or without LR adjustments), I alway receive a Warning Window saying: Lightroom was unable to prepare the selected file at C:\Documents and Settings\My Name\My Documents\My Pictures\photo.JPG (or TIF or PSD) for editing. It will not be opened.
If I select Edit the Original, the photo is brought into CS3 for editing. This selection is the only one which work. I wish to point out that the Copy File Options are grayed-out with the Edit Original Selection. And, the Copy File Options are NOT Grayed-out with Copy Options.
In summary, if Copy File Options available, the JPG (or TIF or PSD) will not be prepared by Lighrooom for editing in CS3. My Copy File Options show TIFF and PSD pnly; no JPG. If I read correctly, I cannot Copy a JPG for editing into CS3. What I do not understand is if I have a TIFF or PSD in the Library, the Copy Option still fails to execute. The point John has made about RAW requires me to look into that aspect. I need to know more about that.
Can anyone right-click a JPG in the LR Libary. Then select Edit in CS3. Then use either of the two Copy Functions Selections for the action of that JPG being prepared by LR and brought into CS3 for editing?
This action will not work for me.
I do plan to update my version soon.
All replys and suggestions are welcomed.
Regards,
James

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