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The Canon EOS 350 (DIgital Rebel XT) was not added to Camera Raw until version 3.1. Photoshop CS only supports Camera Raw 2.x.
You will need to upgrade to CS2 or use the DNG Converter utility to convert the raw files from the 350 to a DNG file that Photoshop CS can work with.
Is the DNG converter utility a free download or a program one has to buy? Bean