using raw in ps

RAW files are just digital info...not actually an image. To work on and save the image...you need to convert it to an image format (JPEG, TIFF, PSD etc.)

When you try to open a RAW file in photoshop...(if it's compatible) it will open a sub program called ACR (Adobe Camera RAW)...which is a RAW converter. In ACR, you can make adjustments...and then when you hit OK...the image is imported into Photoshop. Then you can save it as what ever type of image you want.

The catch is that your ACR needs to be up-to-date...to read RAW files from newer cameras. You can download ACR updates from Adobe. With the newest cameras...you will also need the latest version of Photoshop (CS2).
 

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