i must have down something reasonable stupide because its now saying I havent picked any pixwela even though ive tried using the lasso and the magic wand and it looks like Ive picked something
Hi. My first question is whether you're rasterizing to 300dpi in Illustrator, so that there're sufficient pixels for your Photoshop image.
If that's not the issue, I can tell you of my attempts.
Not sure of your OS or graphics card, but I found problems on mine (with Mac OS 10.10.5 Yosemite) and an NVIDIA GeForce GTX 980 to actually CRASH when I was trying your method. I changed 2 things, and it worked perfectly.
Firstly instead of placing the file and rasterizing it again, after going into PS, I did rasterize it in AI, then simply OPENED it with Photoshop. I'm not sure why that made a difference, except that it was already rasterized and never placed as a Smart Object.
Here's where I think it really made a difference, though - I went to Preferences>Performance. Then, where the option for using graphics processor acceleration is - I opened "Advanced Settings" I changed my drawing mode from Advanced to Normal - putting less pressure on my graphics card. All went well and my image worked perfectly.
Hope that helps. Otherwise, Please give us some more information on your operating system, and graphics card.
Thank you so much for your thorough answers really appreciate it. I have a very normal Mac desktop that's about 4 Years old so crashing is on the cards hahaha thanks again!