A .psd file is an "intermediate" file that you can open with Photoshop but
not with XP. You use this file type when you want to edit a jpg many times
and you want to save it many times until you are done with editing.
Suppose you added text on top of a photo, if you save as .psd you can open
it and remove the text etc. If you save as .jpg you can no longer remove the
text etc. you made. So once your editing is done, save as jpg. Elements 2.0
gives you this choice.
Lawrence said:
Does anyone know why a variety of Window Icons are replacing my thumbnails
in "My Pictures" folder? It only seems to do it with picture files saved as
Photoshop files with the PSD extension. Tiff and JPG files have not been
affected. I have been using Photoshop Elements 2.0., and if I open My
Pictures from Elemements all the thumbnails are normal.