Camera Raw 3.7 doesn't support the Nikon D60. Camera Raw 4.x added support for the D60. Your only alternative to upgrading is to download the free DNG Converter (you may as well get the most recent 6.3 version) and convert the D60 NEF files to DNG.
Well that answers that question! Thanks. What benefit would I get from converting to DNG? I don't know much about it. Thanks
… What benefit would I get from converting to DNG?…
The ability to open the raw DNG file in your ancient version of Camera Raw.
Thanks I'll give it a try