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There is another option in the Bridge preferences where you specify to use Camera Raw in Bridge. I can not remember the exact wording, but in CS2 it is in the advanced section of the preferences dialog, and it says, "Double-click edits Camera Raw settings in Bridge." There is something similar in CS3, but I don't have it here at work.
I was having same problem..unable to open jpeg in raw with 4.1 and CS3. Following Jim's suggestion, I went into Bridge - Edit - Preferences - File Handling.
I "checked" "Prefer Adobe Camera Raw for JPEG file" and hit OK.
It now opens jpeg files in Camera Raw. I can only hope that this will not cause other problems. I'm brand new to CR 4.1 and CS3. In order to open raw files from new Canon Mark III, I had to jump in.
If someone is aware of why you should not do this, please let me know.
I just installed CS3 to my PC last night. What a chore THAT was - another story for another thread....Had a few minutes before bedtime to play with it.
When I clicked on a jpeg in Bridge, it automatically opened in ACR. I was rather shocked as I was expecting Photoshop to open... I read that in Lightroom one could do non-destructive editing to jpegs. Is that what is going on here with CS3?
What advantages are there to editing a jpeg in ACR as opposed to PhotoShop?
Are the jpegs opened in ACR at 16 bit level?
The big advantage to editing JPEG images in ACR is that all the changes are made nondestructively, the same as in Lightroom. As with raw images, one of your Bridge options is to right-click on the image and clear the settings to restore the image to its original state, unless you saved a JPEG and replaced the original in Photoshop. The new sharpening and clarity controls in ACR 4.1 work as well on JPEG images as they do raw images. I prefer doing my initial editing in ACR regardless of whether I am working with JPEG or raw images.
A JPEG image is an 8-bit image. You can change your output options in ACR so that the image will be imported into Photoshop as a 16-bit image, but I'm not sure how much benefit will be gained from doing that. If you choose to do it this way, it will still be necessary for you to convert back to an 8-bit image before you will be able to save it as a JPEG again.