My conclusion is that there is not a problem with the CR2 file, since the CR2 file converted to the TIFF has the most detail, but something is happening when I import it into photoshop. I just don't know what settings I should be looking at to fix this problem. Any help would be appreciated.
Camera Raw 101: ACR has different baseline "Defaults" than the Canon software, therefore you will need to make your own adjustments–and perhaps save out a new ACR Default. Canon's software only has to worry about a small sampling of cameras. Camera Raw supports over 230 cameras' raw files. As a result Canon's software tends to match the in camera JPEG and the camera's LCD by default.
Camera Raw on the other hand is more concerned offering a normalized default rendering of the raw data. Rather than trying to force a certain "look" (generally higher in contrast and more saturated) ACR will show the raw data a bit flatter and less saturated.
Fact is, Camera Raw has a huge number of controls for the express purpose of allowing the user to maintain total control over the rendering of the raw data...what you need to do is learn how to use all the sliders....
Thanks I've realized my problem was not understanding RAW very well. The picture is much better after just adjusting the luminance noise.
thanks for your time.