I don't know how new the D7000 camera is. If new it can take up to 2 months to get a new ACR update.
Click on Help and search for camera raw camera supported for a list.
I just bought the d7000 yesterday and was experiencing the same issue with cs4. I downloaded the DNG converter from adobe and selected the whole folder where the raw files were located (I was unable to select individual images) and it worked fine. It processed the files one by one with new name (without the $500 CS5 pricetag for now). The DNG files open in bridge and psd. Perhaps try selecting the folder? Good luck.
Thanks. I did as you suggested and everything is working fine now. I appreciate your time in responding.