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YOu need to use the Adobe DNG Converter. Drag the CR2 files onto the converter and it will convert them to DNG files that Photoshop CS can read.
DNG converter info and download are at http://www.adobe.com/products/dng/
thanks for the info john. i downloaded DNG converter and converted an image. however, when i tried to open it in photoshop it would not allow me to because it is "not the right kind of document". does photoshop cs perhaps not support .dng files? any other ideas?
You'll also have to update your Camera Raw to version 2.4. Then purge the cache for that folder holding the DNGs.
perfect!!! thank you both for the help.