Changing default resolution in PS Elements?

Don Simon

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This seems like a really silly question, but why are the images from my compact p&s digital always displayed at 72ppi when I open them in Photoshop elements? Does that mean I need to cut it down to 25% size for printing (at roughly 300ppi)? And is there any way to make it open as 300dpi instead of 72? Thanks.

P.s. when I click print, unless I select a very small print size I get a little warning notice telling me "Image will print at less than 220 ppi at the selected size". I don't understand why that would be the case, since it's a 7-megapixel camera.
 

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