The key is whether or not the latest version of Adobe Camera Raw available for your version of either Photoshop or Elements will support RAW files from your camera, if it's a later model. For Photoshop 7.0, unlikely. For Elements 7, possible.
The workaround: Download the latest version of Adobe's Digital Negative Converter (v. 5.x) and use that to convert your RAW files to DNG format, which should work with your software. I have to do that with Photshop CS3 because the latest version of ACR available for it does not support RAW files from my Canon EOS 5D Mk. II. It's an extra step in the workflow, but much cheaper than upgrading to CS4 (DNG converter is free.)
-------------------- Black & White tells the story. Color makes the story pretty.