PSD Smart Object Output

So I work in production and tend to get files from one designer who likes to place Illustrator smart objects into Photoshop. This includes everything from headlines to small 6pt type as well as vector backgrounds. Since I need to send these files to various printers and have no control over how they output the files, I have been pulling his vector objects and recreating the files in Illustrator—he ususally has very little photoshop effects on his smart objects so it's not too difficult to do—just time consuming, as often the smart object is not to proportion when I export it.
So my question is, am I creating more work than necessary for myself? My belief is that I will get a cleaner output from Illustrator (especially for small type), plus I often have to repurpose designs into new sizes. Or does photoshop handle vector smart objects well enough that I could just leave everything.
Using CS6.
Thanks
Jeff

I assume you used CS5 in both offices?
Before CS5, SOs did not work on the principle of external links. If you were using CS4 or earlier, it's not likely you saw an edited SO just because you made an edit to your original AI file. There's no connection between the two.
Up to CS5, SO data is stored INSIDE Photoshop. When you double click an SO, that temporary file (the one you're asking about)  opens to make your edits, then "disappears" once you save it. That's how and when the SO is updated.
It's my understanding that there's a plug-in or patch for CS5 that WILL permit linking. I don't have it but have read references to it in this forum. Someone will be along who knows more. But if such an add-on does exist, it's possible your success in the first office was due to it, and the machine in the second office didn't have it loaded?

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