If you have Adobe® Photoshop® CS3 and Photoshop Elements installed on the same computer, you can send JPEG, GIF, and other single-page photo files to Photoshop. (Set file-opening preferences in Adobe Bridge.) Photoshop does not support the multipage PSE file format, so it cannot edit entire photo projects. However, Photoshop can edit individual pages of a photo project, which are in the single-page PSD format. Use Show Package Contents to identify individual PSE and PSD files.
Photoshop offers direct control over many aspects of photo project pages, including direct editing of photo layers (called Smart Objects in Photoshop) and frames. These features are limited in Photoshop Elements to preserve its easy, automatic image-editing workflow.