Photoshop Elements 7 Canon RAW image

I just purchased and loaded Elements 7, because I couldn't use Elements 5 to read Canon RAW (.CR2) images. I was told that Elements 7 would read Canon RAW files.
I get the same error message when I try to load a Canon RAW image. Message is "Cannot open Canon IMG_001.CR2 because it is the wrong type of fie". The file format type, .CR2, is not even listed as an option. I am using Windows Vista Home Premium. Camera is Canon 50D.
What do I do? If Elements 7 won't read Canon RAW, then I guess I need to return it.
Thanks,
Howard

Howard,
You may have been given misleading information -- PSE 5 should indeed read Canon 50D raw files. According to this Adobe tech note, PSE 5 supports Adobe Camera Raw 4.6:
http://www.adobe.com/go/kb407110
and according to the ACR 4.6 download page, it supports the Canon 50D:
http://www.adobe.com/support/downloads/detail.jsp?ftpID=4036
So if you really didn't want to spend the money for upgrading, you could return PSE 7.
If you want to keep PSE 7, then that error message indicates that either you have the wrong version of ACR installed or it is installed incorrectly. The Adobe tech note above walks you through how to fix it.

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