That camera requires Camera Raw 8.3 or higher. That version of Camera Raw is not compatible with the version of Photoshop you are using. Normally I could recommend the DNG converter, but the version of the converter that you need is not compatible with Vista. You will either have to use the software supplied with the camera or consider getting a more up-to-date computer. You need at least Windows 7. And if you don't want to use the DNG converter you need Photoshop CS6 or Photoshop CC in order to open your raw images. You could also consider Photoshop Elements.
Thank you for that Jim. I went out and bought a new PC as it was on its last legs anyway. Just setting it up now so fingers crossed that solves things. If I were to upgrade to CS6 do you know if there are upgrade deals or is it just buying the package outright?
You can purchase an upgrade, but the only options available as a qualifying previous product are CS5 and CS5 Extended and Acrobat X Suite. It isn't entirely clear if CS5 also includes CS5.1 or not, so I'd suggest using the Chat Now button over at the side to clarify.
To get to this listing, you can go to www.adobe.com then click Search and type in Photoshop CS6 then click the Buy button next to Photoshop CS6 in the results Creative Suite 6 then edit your cart to make it an upgrade:
You can also choose the Extended version of PS CS6 which is more money and can additionally do things with video and sequences of images and maybe 3D, although I'm not exactly sure at this point since I already have PS-CS6 Extended as part of my CC Photography Plan PS-CC+LR for $10/month.
Personally, I think the $9.99/month creative cloud package for Photoshop and Lightroom is the best choice. You get the very latest versions of both programs, and can be assured that you will always have the latest release. It might cost a little more than purchasing upgrades. But in the long run I decided that the difference wasn't significant enough to even be concerned with.