This is my first post and believe me, new to using the convertor and little knowledge of PS.
Once the .nef file is converted to DNG, then I try to open the file in 7.0.1, the message comes up saying PS is unable to open this file.
Is there a DNG plug-in that must be installed or is this version of PS not compatible with the convertor?
If you are really talking about Photoshop 7, then the answer is that there is nothing available to make it compatible with DNG files. The program is obsolete as far as raw?DNG files are concerned. I understand that there was a raw converter available at one time that could be purchased that would convert the raw images from a very few cameras. But there has been a whole generation of cameras since then and that converter would probably be useless to you even if you can find it.