PSE 7 Editing Problem using Photoshop CS4

I recently upgraded to PSE 7 and am totally confounded by a recurring problem using Photoshop CS4 as my editor for photos from PSE 7.  When I enter Ctrl + H, Adobe Photoshop CS4 opens the photo just fine and I am able to edit without any issues.  When I am done editing, I save the file, close Photoshop (or close the file) and the photo is immeditealy deleted from the directory even though it was just saved in the directory.
I recently re-installed Windows XP, PSE 7, and Photoshop CS4, and the problem continues.  Any help or suggestions?  I really prefer to use the Photoshop CS4 editor.

Thanks for the response.  However, I don't believe the article you you referred to actually refers to the problem I'm having.  It seeems more specific to thumbnails from .PSD files created in CS4.
However, the work-around you mentioned is a possibility for me as well.  However, instead of overwriting the original, I can also save the edited file to another directory and copy it back to he directory once I exit PSE.  This gets to be a REAL PAIN, though, when you're editing several photos at a sitting.
Thanks, again, for the suggestion.

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