P: Lightroom 4 requires Camera Raw 7.0

Same message in LR 4.2 when using PS CS5

You're not supposed to see a dialog using Edit In Photoshop if LR and PS/ACR have compatible versions.

To see a dialog, you can create a separate 3rd-party-external-editor link and point that at the Photoshop executable. It at least used to be that you had to make a copy of the executable with a new name, Photoshopx.exe, and designate that copy as the external editor so LR wouldn't detect it being Photoshop and not show a dialog like it doesn't with the real Photoshop executable.

Thanks for the response - I have now downloaded ACR 6.7 RC and the link with LR is restored. Still does not come up with dialogue box giving me options however I can live with that.
Geoff

LR 4.1 RC + PS CS5 (12.0.4) + ACR 6.7 RC, no CS6 on the system, works as it should for me on Windows 7 32-bit.

In other words: Edit in Photoshop CS5 on a RAW file in LR4.1 RC brings up PS-CS5 and says it's reading the RAW format, and opens the image in PS-CS5 that looks the same as in LR4.1 RC. No intermediate file or popups or other unexpected things.

It is what it is.

Thanks again, Steve, for the exact same advice you offered several weeks ago. Not only is the suggestion that I avoid the product still incredibly helpful, but probably also much appreciated by Adobe.

Do you have ACR 6.7 RC installed, also?

I have downloaded LR4.1 but when I try to edit in CS5 the LR adjustments are not transferred over. The "Edit with LR adjustments" dialgue box came up the first time I tried "Edit in CS5" but not since.

You don't have to use LR4, yet, if you find the integration and workarounds unacceptable. I would expect things to work better with the final release of ACR 6.7 and LR4.1. Those that do not have a cross-product dependency are happy to see a new version of LR4 sooner rather than later.

Try LR 4.1 RC, I think it doesn't warn, anymore, about ACR 6.7.