I'm not sure of the answer but I would try saving as TIFF. TIFF is the most recommended format to use.
THANKS Geoff, I could try that, why do you think that would work?
I used to save everything hi res as Tiffs, did a lot of stock... but for some reason, I thought that PSD, was a great hi res format as well, no?
TIFF is more widely used and funnily enough is even recommended by Adobe gurus and some staff.
So I turned it on, quit/ relaunched PS (CS5), Then opened all 20, re-saved them all, but the problem remains, LR (newest version), is still giving me the same message.
Re-saving doesn't fix them because you are still saving the same file with its original Max compatibility setting. You would need to Save As and overwrite the file, by which time you may as well use TIF.
In any case, in the long run TIF is more compatible than the proprietary PSD format and is equivalent for all practical purposes TIF. Duotone mode, displacement maps and transparency in InDesign are the three pretty obscure reasons you might need PSD.
Thanks guys, I'm retired from PSD forever. Tiff worked. Nice explanation John, and one could always make a PSD for those obscure uses.