Photoshop files in FCE - Cannot Open Project

I have a series of Photoshop files (RGB with about 10 layers a piece).
I am able to import a file into FCE HD and move the layers around as tracks - everything works great.
I save the file, and close. When I try to re-open the file, I get the dreaded "Cannot open project file".
I have tried this with an external drive and saving to the desktop. I have also tried importing normal pictures - no problem. It's when I import layers. I have been able to isolate the problem to layered Photoshop files.
Any ideas?
thanks.

Any PS file that has transparency that is imported
into a PAL project will corrupt the file, so
that you cannot open it again. Sorry.
See this (9th post down) which showed that any file created in Photoshop with its type as ".psd", whether with or without transparency, will give this fault. However, a file created in Photoshop with .tif will be safe even if it has transparency.
G5/2.0 GHz   Mac OS X (10.3.9)   1 GB RAM, 150 GB HD, Sony DCR-HC96 mini DV, FCE HD 3.0 DVD SP 3

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