Does light room 3 do cr2 files?

LR2 did, I would assume 3 would too, though I haven't used it yet.
(EDIT - LR3 beta worked with .cr2...)

You probably just need to update the Adobe Camera RAW for it to work in PS...
 
Well I bought a new Canon 60D and my CS4 won't work with the raw files. Will Lightroom 3 bring in the raw files?

Thanks
Sure, CS4 will work with 60D Raw files. They just need to be converted to .DNG files first.

It's more than just .cr2 files.

Each Canon camera model has a unique .cr2 Raw file format and Adobe has to reverse engineer each one.

The 60D was launched well after CS5 was introduced and is supported in Camera Raw 6.2 (ACR 6.2), which is why CS4 can't open them. CS4 only supports Camera Raw (ACR) 5.0-5.6.

Lightroom 3 also uses ACR 6.0-6.2.
 

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