Sounds like the link is missing.
You should also take note that CS2 is not supported under Windows 7 and CS2 is the earliest version eligible for upgrade pricing. If you intend to keep up you should consider upgrading now unless you don't mind the idea of going to a subscription for Creative Cloud.
Dear Bob, if you mean the graphic link is missing no it's not. I can open the document on a colleague's computer and do the edit original thing.
Thanks for the tip on CS2.
I'm running InDesign in XP mode on the win 7 pc.
Opening the document on a different computer is a meaningless test for something like this.
The link could well be present there and not on your computer.
As for XP mode, the less I say about it the better.
Should have explained that I work on a small business server network so all the files are held on the server on the same paths and not locally on the individual computers. Also misled you about the virtual XP mode. I do have that on the machine and tried loading ID into there and just had exactly the same problem as running ID in the main win7 environment. Does that help you to help me?
Well folks - solved the problem if anyone else wants to know ...
.psd files weren't properly associated with Photoshop.
Associated the extension with Photoshop and the edit original option reappears everywhere!