I think it would be better not to think in terms of that LR "applies" edits. Since LR stores changes in the catalog, the changes are "applied" to the image only on Export. I think it wouldbe better to use the term "display" instead of "apply". So then: When from LR you open a RAW image in PS the LR-edits done up to then are displayed in PS and then "applied" when you save from PS (remember PS CS5 opens the RAW image). If you do more edits in PS and save these, LR will display these edits - you will notice then on return from PS, LR will re-load the image. On "Save" PS applies (and here the word "apply" is correct) the edits by writing them into the image file. LR reads the saved file and displays it with the PS-edits. But the LR catalog settings are still in the state of the point in time before you opened the image in PS. This is so because PS writes the edits into the image file and not into the LR catalog. So now you have one set of edits in the LR Catalog and another set of edits in the image file. To describe this as "kinda 'over-top' with the PS edits applied, but it really hasn't applied them" doesn't fit the bill because LR "applies" only on Export. What LR does at this point is reading the image file with the PS-edits and displaying the image accordingly. But LR "senses" that what is displayed is not in line of what's in the catalog. This is the conflict that Lr wants to resolve by popping the message. You say " If so, then you would really want to import the settings from disk so that the file will take on the PS edits, right? " Yes, if you want your PS-edits to override your previous LR-edits. I have now come to a workflow where I do not make edits in PS that I can do in LR - and I do not do edits in LR that PS is better at. Practically speaking: In PS I do cloning and also noise reduction when the LR-NR is not enough (for instance in noisy scans). I don't do any tonal or color adjustments in PS because it's easier in Lr and gives me better results. When the message in question appears, I select "Overwrite disk settings" - this preserves any Lr edits and does not overwrite the cloning. WW
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