You can place EPS, AI, JPEG and PSD as graphics, but you cannot edit them.
To edit AI files or EPS files created in Illustrator, use Adobe Illustrator.
To edit PSD or JPEG files, use Adobe Photoshop.
There's no way to do it in InDesign.
Thank you! I loved watching a couple of the InDesign intro videos, as I am a lapsed PageMaker users and thought I had gone back in time! PageMaker was my favorite of all time. I've been doing marketing and content for companies that have whole departments to do layout, etc., but I'm in a position to get going again full range. Does Photoshop ungroup the jpg and psd template elements for editing?
I'm not getting what you mean by "Does Photoshop ungroup the jpg and psd template elements for editing?"
What template are you referring to?
You can edit a graphic by choosing Edit Original from the Links panel menu. It will open in the editing application (Photoshop, Illustrator, etc.) When you save changes, it will be updated in InDesign.