There is nothing in the ACR update that would cause that. Try deleting the preferences. Quit the editor then restart it while holding command+shift+option. Keep the keys down till you see a window asking if you want to delete the settings file. You do.
Uninstalling and reinstalling might not help as it sounds more like a problem with the corrupted preferences. Try this:
- Close all running PSE applications.
- Go to [HD]>>users>>[your username]>>library>>preferences and look for a file named 'com.adobe.photoshopelements9editor.plist'
- When found, move this file to the desktop. (ensure that you're not copying the file, move it)
- Now launch PSE and see how that works.
Problem seems to have corrected itself. The problem was that the images were being saved as psd and not jpg and jpg was not an option when I moved from the NEF/RAW image editor to saving in the regular editor, then all of a sudden after 3-4 tries jpg was an option and then the convert to black and white reappeared
Ah, you may have been converting them as 16 bit files. Many features in PSE aren't available for use with 16 bit files and jpegs are always 8 bits.
turns out that is exactly what happened, not sure why but I was able to change to 8 bit and am back in business