Network Cloud Drive and PS Elements 10

Question

I have added a personal Cloud Drive to my home computer network system.  This Drive is hard connected to my router with it's own IP address, and is shared by all my devices including those Wifi'ed such as my phones, tablets and Wifi enabled camera.  The drive is accessible anywhere in the world as long as I have internet connectivity. 
The great part is, I can now access these files directly from my computers with PS on them.  No more emailing photos, then saving them to an accessible file located on my hard drive or some other sort of Flash drive storage.
It certainly cut down on handling photos taken via a phone, tablet, or the new Wifi capable cameras.  It used to irritate me when I had to email those photos from my phone or tablet.  Come home and then have to mess around pulling those up in email, opening them, then saving them to a file.  I long ago filled up any free Cloud storage that was offered on-line.  I found those difficult to set up and use too.  Not to mention someone might having access to the files?
Windows 7 with Photoshop Elements 10,  Western Digital "4TB My Cloud" drive
Just passing the word!

Answer 1

You're selecting the wrong item as the editor in the Adobe PSE folder.  It's fooled a lot of us in the past.  This is the file you want to select as the external editor:
I may be preaching to the choir here but maybe the following will enlighten a bit on using PSE as the external editor:
Using Photoshop or Photoshop Elements as Your Editor of Choice in iPhoto.
1 - select Photoshop or Photoshop Elememts 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  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 1: screenshots are from PSE 10
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. If you use iPhoto to edit more than PSE re-select iPhoto in the iPhoto General preference pane. Then iPhoto will be the default editor and you can use the contextual menu to select PSE for your editor when desired.
My apologies if you've already seen the above.
OT