Photoshop Lightroom and Photoshop CS5 .psd files compatibility

Currently I'm trying to open a .psd file for a graphic in Lightroom but I cannot see any .psd extensions. Any idea how to do so? In other words, .psd is not in the supported files extensions in Lightroom? Anybody knows how to deal with such problem?

Hi Jasonized,
     Thank you for your response! I appreciate it a lot. However, I'm watching Chris Orwig who did it without a problem. The vidio is named 0205 Using a graphic identity plate.mov, time 01:40 from this movie. These are lessons for Photoshop Lightroom. The title is called 'Photoshop Lightroom 3 Essential Training' from Lynda.com.
     If somebody wish I could provide him/her with the movie file to see exactly what it's all about.
     I believe the answer should be something connected with compatibily in photoshop.
     I would appreciate if someone give me a fresh idea how to solve this issue.
     Bye for now!! Cheers!!

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