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There are many enhancements to ACR in Photoshop CS3 and Bridge 2.1. They are too numerous to elaborate on here. You indicate that you have installed Bridge for CS3, but did you install Photoshop or was it just other programs? Incidentally, ACR has been updated once already to 4.1, and it has even more new controls on it. Here is a link to an article about it.
Jim, a fantastic article and just what I was looking for.
However, I have installed CS3 Bridge (and CS3 Dreamweaver) but not CS3 Photoshop.
Can I install CR 4.1 and use it in CS2 Photoshop?
So CR 3.6 is the latest version of CR I can use?
No, that isn't correct either. You can use ACR 3.7. The advantage to doing that is that 3.7 will read the changes in raw files that were edited in ACR 4.0 although it is not possible to see the adjustment controls. I don't know if 3.7 is able to read the new sharpening and clarity adjustments. The answer is probably that it cannot read them.
Please don't start multiple threads again.