They should indeed. This is a broken monitor profile, affecting the two differently.
Recalibrate, and make sure your calibrator produces v2, matrix-based profiles (if you don't have those options it does). V4 and LUT profiles can be problematic in some cases. If you don't have a calibrator, use sRGB IEC61966-2.1 for now. Relaunch Photoshop when done:
BTW, the camera setting for color space is moot. That applies to in-camera processed jpegs, not raw files.
You 'da man! You fixed my problem.
It appears Microsoft updated my Windows 7 U2401 driver Saturday night which screwed things up.
Incidentally, there's no particular need to have color settings synchronized between ACR / Lr and Photoshop. These are, after all, color managed applications that display correctly whatever the source color space.
The one exception is if you have a wide gamut monitor and go from Adobe RGB or larger, and into sRGB. In this case you will see the gamut clipping if there is any. With a standard gamut monitor they should always, under any circumstances, display identically.