DNG into Photoshop Elements 3 - What am I doing wrong?

[TheReef]

Hi all,
I can't work out how to get my Pentax RAW files (DNG) into Photoshop Elements 3 correctly.

When I open them, they appear as a small thumbnail.

This also happens when importing into iPhoto 5. (They appear as small thumbnails).

 

[TheReef]

Ok, I downloaded camera raw 2.3 (even though I didn't think I would need too, isn't DNG a native Adobe format?) and I can open them.

It says I'm using a Nikon D200, is this a problem?


How would I go about doing this with iPhoto?