When I later look at C dirve/My Pictures, all of the thumbnails are the Adobe logo instead of the edited photo. Am I missing a step that would make the thumbnails the updated photo?
Can you provide more information please - Windows/Mac, operating system, PSE version, the format of the file (jpg. psd..).
If you are on Windows and have saved the image in psd format, then some versions of Windows don't understand that format and so display the PSE logo.
I have Windows 7 and Elements 11. The saved image is .psd. I just tried 'Save As' on an image and changed to .jpg and looked in "My Pictures" folder. Now it has the Picasa logo and I cannot open it....says Invalid Image.
There isn't a plugin for Windows 7 so that it can display an icon for a .psd file which is why you see the pse icon. This is another reason to use the organizer to manage your images.
When you used "Save As" did you select the format from the dropdown list?
I tend to leave off the extension when typing in the name a just let PSE fill it in.