This issue should be resolved in Premiere Pro CS5.5.
Thanks for the advice. Sending all the photos to PS seemed to have done the trick and I can now move on with my project.
This is to Adobe:- I have spent all day (6 hrs) sending 1000 photos to Photoshop and resaving them as the file that already existed. This has been a huge waste of my time and I’m seriously upset with the software which as a package cost me over a 1000 dollars. Hearing CS5.5 should work after spening this amount doesn't help me.
Today, the 4th of July……..has been wasted. This is NOT cool. You’re lucky I don’t bill your *** for time lost.
Though too late to help now, but you could have done an Action in PS, to Open, then Save_As, and in File>Automate to Batch, run that Action on an entire folder, with a new Destination Folder. For about 300 Image files, this takes about 1 - 3 mins. on my workstation, and one never touches an image.
Sorry that I did not see this earlier, as I could have saved a bunch of time, and automated the entire process.