Photoshop layer files NOW BROKEN!

After upgrading to Quicktime 7.1.3, I can no longer import Photoshop layered files. They import as Quicktime files NOT Photoshop files.
This is a MAJOR PROBLEM for me as I use layered files for buttons and now the layers DON'T SHOW UP.
I've tested this with three different computers (two with DVDSP 4.0.3, one with version 4.1.1, all with Quicktime 7.1.3) all have the same problem. Opening up older projects and using old photoshop layered files works fine.
This does not appear to be a Photoshop problem.
Anyone else having this problem?
mike

After a recent series of upgrades, I am having several DVDSP issues, including the fact that my .psd overlay file gets automatically transcoded to Quicktime image. I also have Quicktime 7.1.3, as well as OS X.4.8.
I'm also having old projects not open up, however, and an oddity: when I click and drag in the menu window, it won't create an active area bounding box, so I can't create buttons. I don't know if that has to do with the overlay format. There's another recent thread with another user having the same button problem.
Do you also have any of these symptoms?

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