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Read the title bar of the dialog.
It's strange that ACR versions 4.x and 3.x are somehow mixed. That is, CS2 uses 3.x and CS3 uses 4.x, and otherwise incompatible (AFAIK).
Updating is best accomplished via the PS 'Help=>update' menu.
I'm using Windows XP. ACR has no title bar.
It should. I have attached a screen shot of Camera Raw 4.1 in XP where it shows the Camera Raw version and the camera used.
If that isn't working, you can go into Photoshop, click on the Help menu, select About Plug-in and select Camera Raw. There it will list the version number at the lower right side of the image in the dialog box.
Thanks! I was displaying in Full Screen mode.