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You have to wait for the Elements 4,0,1 update.
ACR 4,1 does not work with Elements 4.0.
Check the Photoshop Elements forum.
Please try it with version 3.7. You can find it at
To install with Adobe Photoshop Elements 4.0:
1. Exit Photoshop Elements and Adobe Bridge
2. Open the Finder
3. Navigate to the root of the local disk (not the user's home folder).
4. Navigate to: (Please read directory carefully)
Library/Application Support/Adobe/Plug-Ins/CS2/File Formats
5. Move the existing plug-in to another location (for example, a new folder on your desktop). Ensure you keep this version in case you need to revert back.
6. Copy the Camera Raw plug-in, Camera Raw, from the download into the same folder as in Step 4.
7. Launch Photoshop Elements or Adobe Bridge.
Also make sure that you don't have the Nikon raw/nef plug in installed and over riding the Adobe one. Sorry, I don't have a Nikon to be able to tell you the name of their plugin.
Success - TY so much!!! I think it was the Nikon plug in that was the problem - I'm now functioning with 3.7 - thanks again.
Thanks for taking the time to help me - I'll use 3.7 until 4.0.1 comes out.