Searcher wrote:
When you open a raw file in PSE, the Camera Raw Editor opens and you can apply edits to the image. then you have a choice, Close and lose edits, open the image in the PSE editor (as opposed to the Camera Raw editor) or save as dng file.
If you open the image in PSE you can then perform further edits and save as whatever you like, the raw file will still be where you left it, unscathed, but now with an xmp file to remember your edits done in ACR.
Are you saying that Photoshop Elements creates an xmp file? I know lightroom does but had no idea that Elements did.