Well this is odd. I was pasting shapes from Illustrator to Photoshop seamlessly until I tried the masthead I had designed. It pastes as the others just fine but for some reason when it has to be pasted as a Shape Layer, the UI locks up and the pasted image won't update. The UI is unresponsive but it seems Photoshop still works. Why is this happening and is there a way to prevent this?
Do you have an ATI video card and the Catalyst 12.1 driver by chance?
It's turning out 12.1 is quite a bust of a release with regard to using it with Photoshop.
I actually have an Nvidia GT220. Other shapes were pasting just fine. It's just this masthead.