chas3stix wrote: I went and removed the ACR 3.5 file from PSE5.
Chas,
Went back and reread this thread. It sounds like your problem went away when you deleted the old version of camera raw.
If so, this is the key thing. You must delete, not rename the old camera raw. This is an ongoing problem for elements users installing camera raw.
Can you confirm that you did not delete, and then when deleted, the problem got fixed?