kevin4545 wrote:
So I turned it on, quit/ relaunched PS (CS5), Then opened all 20, re-saved them all, but the problem remains, LR (newest version), is still giving me the same message.
Re-saving doesn't fix them because you are still saving the same file with its original Max compatibility setting. You would need to Save As and overwrite the file, by which time you may as well use TIF.
In any case, in the long run TIF is more compatible than the proprietary PSD format and is equivalent for all practical purposes TIF. Duotone mode, displacement maps and transparency in InDesign are the three pretty obscure reasons you might need PSD.
John