Ernie: have you tried to use the results ?
at least on the files I tried I had the following results:
1) import failure, somthing in the file that design can't parse.
2) when a file can be read the result was a single bitmap image.
what I am asking for is a true import / conversion so that I can get the layers and objects to edit.
for example a designer makes a psd to make a flash game, i need to get the elements that make the buttons seperate from the elements that make up the "background" and the other UI elements.
so that I can animate the UI.
I need the layers that have the transparency effects, gradients and so forth.
as for the psd format there are other apps that read psd files and edit them, the info is out there....
if msft has problems with this then a 3rd party can sell a conversion tool to do it...
for example Correl Paint SHop Pro reads and writes most psd files, there are some effects it can not handle, so the new versions need updates...