You cannot extrude a pixel image. You need genuine contours from a shape or text layer.
I also dropped the image into Photoshop and made it a Smart Image. I put the psd file into AE, but had the same result. Is there something I can do to the image in PS to be able to extrude it in AE?
If you want to extrude you need to enable Ray-traced rendering and have either a shape layer or a text layer. All other layers can only be bent. Your only other option would be to create a shape in C4D lite and add your image as a texture map or purchase a 3rd party plug-in like Element or ZaxWerks. You could also create your extruded shape in Blender, an open source 3D app that is very powerful and then send your Blender project to AE to bring in the camera. This will give you something like an extruded rectangle with your photo on one side.
If you are trying to take a photo of something like a house and turn that into a 3D model of a house then you are going to have to do it in a 3D app and manually create the geometry or use an app like PhotoScan to turn multiple images into a 3D model with a texture.
That pretty much gives me the answer I am looking for. I thought I was missing something in AE or PS. I will check out some of these third-party options.
Thanks for the info, Mylenium & Rick!!