in pic B above, u will will notice the (crudely) encircled items. item 2 (Pixel Program) refers to the default editing apps for theme studio; item 3 is the absolute path to the .exe file of the editing apps;
change value of item 3 by clicking item 1 (Browse) and you will get the next screen, pic C attached here...
browse thru to the .exe file of ur PS8,
click OK or open and that will now appear in item 3...
click OK then re-start ur theme studio...
note: u can click item 3 and position ur cursor there so that u can see the absolute path of ur existing editing app... if u installed PS8 in the default location of PS7, chances are directory and the .exe file name may almost be same...
sample absolute path in item 3:
C:\Program Files\Adobe\Photoshop Elements 2\PhotoshopElements.exe
i hope this helps you and others who may stray into this thread...
keep the theming community alive .... whoo hooo.......