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Upgraded to PSE 4.01
Removed a copy of ARC from the CS folder. Left copies in the PSE and Bridge plugin folders only.
Now everything appears to be jake.
Your instructions, however, conflict. Only TWO copies of ACR need to be installed. Not three.
I am not a Mac user. But I understand there are two similarly named folders, and some people have confused the folders and put the plug-in in the wrong one. Check the installation instructions and follow them precisely. ACR should be installed once, and only once, and ONLY in the folder outlined in the installation instructions.
Adobe has several different instructions online! Very confusing. A key point is that you MUST have upgraded to Elements 4.01. This should be made much more explicit. If this is not done, it makes no difference how or where you install the plugin.
Once the upgrade is installed, placing the plugin in ONLY the CS folder in the root directory, not the user's directory, works exactly as one of the Adobe instructions reports.
I have now removed the plugin in from both Elements 4.01 and Bridge and have ONLY one copy in the CS folder. This works great.
Now if only digital cameras had better dynamic range -- esp. my old Oly E20.