Are you sure the art is linked and not pasted? Can you select it, right click and choose edit original? If you can and the links panel is empty you probably need to trash the prefs: Replace Your Preferences
Thank you so much for responding. I tried the right clicking on a mac and did not get the choice to edit original - I don't know why? I did look at and click a lot of options in the drop down selections. Now the images are showing in the list. ai's and .psd files are showing up. Do you have any idea what was wrong or what I fixed?
None at all.