First of all, a file has to be created after editing in Photoshop because Photoshop does not write to raw files, ever. So the changes have to be written to a new file. TIF or PSD are preferable to JPEG because there is no quality loss in those file formats. Even with Lightroom 2 the TIF or PSD had to be created. Otherwise, where would all the changes you make in Photoshop be stored?My suggestion would be for you to save creating JPEG's until you need one for e-mail, web posting or to send to a lab to be printed.  That is what the Export function is for.

In the Lightroom options, external editing tab, you have options that include the file that will be created. The choices are TIF or PSD. JPEG is not an option in those choices. That is probably because when you save a JPEG file compression is applied that is detrimental to the quality of the image. And each time you save a JPEG that quality diminishes. So the preferred workflow in Lightroom is to save the work done in Photoshop either as a PSD or TIF file, and then export JPEG images when they are needed. There really isn't a need to have a JPEG on the computer as a "final" image. If you do that and discard your raw images you are doing the equivalent of throwing away negatives back in the film days.

But even if the two are compatible, the file still has to be created after editing in Photoshop. The only difference is the timing of when that file is created. With compatible programs the file isn't created until the end of the editing session. When the programs are not fully compatible the file has to be created first. But regardless, the file has to be created unless you cancel the Photoshop editing session when Lightroom/Photoshop are compatible.

Okay, but the OP is talking about Lightroom 3 and Photoshop CS5. Aren't those two programs in sync? It seems that they were before I switched to Lightroom 4.

As to your point, I had never thought of saving a JPEG that way. Thanks for pointing that out. Probably won't use it, but it's good to be aware of it.

Kara_Rue wrote:

 

The jpgs contain my photoshop edits so that is why I save them. As far as I know, the lightroom data will be retained but any additional photoshop editing will need to be saved in some format. I'm a professional photographer so I like to have the JPGS easily available for when people order prints.

I suppose that is just a difference in our personal workflows. Since JPEG files are compressed with lossy compression, many people prefer to keep the TIF or the PSD that Photoshop creates. That file contains all of the Photoshop changes as well as the original Lightroom adjustments. And there is no quality loss in those files. Then JPEG images are created as needed for printing or sharing on the web. And once that purpose has been met, the JPEG files are deleted. But your workflow seems to be different, and one that you are comfortable with. Sorry for harping like I did. I didn't even think about your need to upgrade ACR. Just be aware that if you decide to upgrade it will be necessary to upgrade both programs in order to keep everything in sync.