Open RAW (.NEF) in Elements from Lightroom

I am using Lightroom 3.3 and Elements 8.  I shoot everything in RAW.  I have imported thousands of RAW files into Lightroom (using the copy command during import) and can no longer open them directly in Elements.  When I edit in Elements from within Lightroom, I could only get it open in TIFF.  I changed preferences and now get PSD.  Either way, I can only get limited options.  For example, I can not do anything with layers; I can only save in a few formats and JPEG is not one of them.  I love elements and have several add-ins that I use regularly. If I try and open one of the RAW files from within Elements I get an error message "Cannot open 'file' because it is the wrong type of file."  Are the two programs not compatible?  And why is LIghtroom changing a .NEF file so I can't edit it any more in Elements?

I think, nowadays nobody really considers PSD as an advantage over TIFF, since TIFF now can hold all the details like layers etc.
The discussion about whether to use Raw or DNG is a different topic, which has been discussed lengthy in other threads. There are advantages and disadvantages for both, but it does not affect what happens when you edit in PSE anyway.
And yes, you will have all the "correction properties" of a Raw in a DNG (which is a Raw also). What you loose (if you don't embed the proprietary Raw into the DNG) when converting to DNG is some proprietary information contained in the Raw, like focus points used.
Beat

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    Date: Tue, 26 Mar 2013 19:02:43 -0700
    From: [email protected]
    To: [email protected]
    Subject: Trying to open RAW (NEF) in CS2
        Re: Trying to open RAW (NEF) in CS2
        created by R_Kelly in Photoshop for Beginners - View the full discussion
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         Please note that the Adobe Forums do not accept email attachments. If you want to embed a screen image in your message please visit the thread in the forum to embed the image at http://forums.adobe.com/message/5182160#5182160
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