Camera Raw 3.7, an update to the RAW processing plug-in for Photoshop CS2 Mac and Windows, is slated for release on February 19. The new version is to coincide with the shipping of Lightroom 1.0 on that day, and will add support for RAW files from the Nikon D40 and Pentax K10D. Plus, it will introduce cross-application compatibility between Lightroom and Photoshop CS2 RAW processing settings stored in a RAW photo's companion sidecar XMP file.
With Camera Raw 3.7 loaded into Photoshop CS2, processing settings that it shares with Photoshop Lightroom 1.0 can be adjusted in one and recognized in the other.
If the processing feature is something that Lightroom offers but Camera Raw doesn't - such as dust spotting - Camera Raw will honour the feature's setting and convert the RAW data accordingly or, optionally, remove the setting altogether. To fine-tune a Lightroom-only RAW processing setting, however, will require a return trip to Lightroom.
Camera Raw 3.7 will be a free download from the Adobe website. Adobe doesn't plan to update Camera Raw 4.0 for the Photoshop CS3 beta, as it mostly or entirely supports cross-application edit settings with Lightroom 1.0 already.