D7100 raw processing

[Marc32]

I bought a D7100 and finally got around to starting to process some raw files in Photoshop Elements 10. I know that version is too old to process the new .nef files from the 7100's sensor so I downloaded the DNG converter from Adobe. Now I'm able to process the files in ACR without a problem.

The thing I ran into today is processsing in any of the Photomerge options. I tried to create a new image with Photomerge scene cleaner and ran into a problem. It allowed me to complete the final image, but when I clicked 'done' the new photo was not created. I thought it was due to the .DNG file type so I saved it as a .TIFF and .JPEG and still was not able to create the new image. I ran one more test shooting in JPEG in the camera and loaded those photos, cleaned them and clicked 'done' and the new file popped up as expected.

Since I shoot raw for my landscapes, is there another way to get Photomerge Scene cleaner to reconize the .DNG files and create the new cleaned up photo like it's supposed to? I have Lightroom 4 but it does not have a tourist remover (or panorama maker that does the same thing to creata new file from a batch) feature. How do I work around this issue between my D7100 raw files and Elements 10? Going to visit Antelope Canyon for the first time this summer and thought this feature would be very helpful with the expected crowds.