RAW files in Iphoto open as JPG in PSE10

I have a new Mac Air, and have been using Iphoto '11 (9.4.2).  I downloaded PSE 10 through the App Store.  In Iphoto I have clicked the "advanced" tabs to use PSE 10 as external editor and to export files as RAW.  However, whenever I try to open a RAW file in PSE 10, it becomes a JPEG.  This is true for both NEF (Nikon d300) and RAF (Fujix-100) files. It is also true whether I try to open the file through Iphoto by clicking the edit button (with PSE 10 as the external editor), or opening the Iphoto file directly through PSE 10.  Also, when in Iphoto, it shows the file accurately as either NEF or RAF), and I can use the RAW editing in Iphoto.
Meanwhile, PSE 10 has no problem opening either type as RAW when I use a source different than Iphoto, for example from the memory card directly out of the cameras.
I feel there must be a simple solution to this, but I'm sure not finding it.  Any help appreciated.
Thanks,
Case

They are only preferences that regenerate automatically as soon as you restart the program. The only program where deleting them will cause problems is OS mail.app, if you use that. Never delete prefs there because they hold your mailboxes in recent versions.
Okay, you want to delete the following in addition to the iphoto plists in my previous post:
com.adobe.PhotoshopElements.plist
Adobe Photoshop Elements 10 paths
Adobe Photoshop Elements 10 settings
All the files are in your username>library>preferences. If you are using 10.7 or 10.8, that library is hidden. To see it, in the Finder, click the Go menu and hold down the Option key. It will appear below the little house for your user account. Also, in 10.7 and 10.8 there is a folder in that library called Saved Application States. Go in there and delete any for PSE and iPhoto.
Repair permissions and try again

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