Rob, I'm not sure what you mean by 'embed'. Are you importing your PowerPoint slides into Captivate? If so, then the PowerPoint presentation never really opens. Send more info.
E-Learning Developer/Captivate Coach
My experience has been that if I do not have PowerPoint open when I choose to "Edit PPT" through Captivate, once I save the changes it goes ahead and closes PowerPoint. However, if I have launched PowerPoint independently, I can still edit through Captivate but PowerPoint remains open even after I save the changes.
Is your system behaving differently? I have not tested this with PowerPoint 2007 - is that what you're using?