How to Convert an Image From Photoshop CS3 to an Older Version
Although most Adobe Photoshop files are backwards compatible, CS3 introduced a number of new features, tools and image adjustment options that are unsupported in older version of Photoshop. Fortunately, Adobe has included a feature in CS3 that helps maximize compatibility with older versions when you save and convert images in Photoshop. This allows files saved in CS3 to be opened and edited in previous versions of Photoshop, although, you may not be able to perform the same adjustments that you did to the images in CS3 in the older version of the software.
Instructions
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Open your image in Adobe Photoshop CS3.
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Perform your desired edits to the image. These may include making tonal and color corrections, adding filters, placing text adding a color profile and resizing the image to new dimensions.
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Go to the "Photoshop" menu and choose "Preferences" > "File Handling." This will open up a dialog box that lists all the options for saving files.
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Under the "File Compatibility" section, find the "Maximize PSD and PSB File Compatibility" menu and select "Always." This will ensure that your saved files are compatible with earlier version of Photoshop. Now click "OK" and close the dialog box.
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Save your image in your desired format and location on your computer. You should be able to open the saved file with any version of Photoshop.
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Tips & Warnings
If you open a CS3 file in an earlier version of Photoshop that does not support the layers, channels or adjustments that were performed in CS3, the image will be opened as a flattened copy with the layers discarded.