Digital Camera Resources
Opening your digital camera files in Photoshop 7
We've asked a dozen experts what they think of Photoshop 7
Photoshop 7 has new color management where it's now reading the color profile listed in the EXIF information. If you have color management enabled, Photoshop 7 will give you a dialogue box on opening an image and another on closing it. The opening box is telling you that the image's working profile doesn't match your Photoshop working color space unless you have your computer set for sRGB. Mine is always set for Adobe RGB (1998). if you are presented with a profile mismatch dialog, select "Use the embedded profile". Two of the three options will require a closing dialogue box to ask if you want to save the changes, even though you haven't made any changes. You must specify not to save the changes even though the default is Yes.
Update. Adobe released a 7.01 patch in August.
Now if you close an image after making no changes, there will not be the dialogue box asking if you want to save the changes.
It's been reported that Nikon's calling their working CoolPix profile as sRGB is inaccurate. Dan Margulis, author of the best color management books "Professional Photoshop 6: The Classic Guide to Color Correction", reports that the CoolPix profile is much closer to Adobe RGB or ColorMatch RGB than sRGB.

I'm finding it extremely annoying to have that opening and closing dialogue for every CoolPix image file I open in Photoshop 7. Good reason to use a viewing program like ACDSee or Irfanview to preview your images and decide which to actually use Photoshop 7 for.

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