Dumb question - opening .jpg in RAW in CS3

OK, I'm of the understanding that one of the big advantages of CS3 is being able to open and control a .jpg in the RAW editor, but I don't see that option. How does one open a .jpg in the RAW editor?

Edit -> Preferences -> "Prefer ACR for JPG files". Then drag and drop them in or open as normal

In my CS3 there is nothing in Preferences who could indicate " Prefer ACR for JPG files".
If you can be more specific, please.
I have it for a month and still groping qround.

Look harder.

It's under File Handing, File Compatibility.

Thanks for the help! Looks like I'm not the only one having a hard time with this.

Thanks Switch. I've found it.