edit in PS CS3

[liquidmonkey]

i have a RAW photo in LR2.' and click on the edit in PS CS3 and PS comes up.
i do my editing and then save.
the file is automatically changed into a TIFF file.
then when i close it, the photo (TIFF) is now shown in LR2.'

all good so far.

my question is, why are my basic levels all reset back to zero?
has something happened to the camera data?
have i done something wrong?
is it ok for me to change the levels and so on now?
currently i'm doing any PS touch ups first and THEN adjusting levels in LR2.'

do i need to change my workflow?

 

[Sean McCormack]

The tiff is a new photo with the settings baked in, so of course the settings are at default.
You can add new settings from there if you like.