PS color profile

The original expression I heard was "she's as mad as a bag of ladders"

ok...i've started editing my first photos since checking the boxes....here's the message i got:
Embedded: Adobe RGB (1998)
Working: sRGB IEC61966-2.1
What would you like to do?
Use embedded profile
Convert document's colors to the working space
Discard the embedded profile (don't color manage)

which should i use if i want to be utilizing my calibrated monitor profile? does this mean i have a setting slightly off since i'm getting this warning? won't i get the warning every time?

The warning is simply that your working color space in Photoshop is one color space(sRGB), but the image being imported is in another(Adobe RGB). Without going into the merits of which colorspace is better, you need to institute a consistent workflow. Either change your Photoshop workspace to match your camera (or raw converter settings) or change the camera settings to match the Photoshop workspace.

Bodog: i shoot RAW and my camera setting is sRGB...I am trying to figure out the best settings in PSCS4 to utilize my calibrated monitor...

The camera's setting for color space does not affect the raw file. Apparently your converter is set to output Adobe RGB. You should either change that setting to sRGB or change Photoshop's working space to Adobe RGB.

ok, so since i've already made changes to the RAW file and attempting to do final touches, which option should i choose so that i get the best results (ie - using my calibrated profile)?

also - the setting i need to change is in ACR, i assume?

The first question is really a judgment call. The simplest answer would be to convert at this point. Some would argue that you should keep the Adobe color space for your edits, then convert. Just don't discard...
For the second question, yes. I don't use ACR so can't be of much help there. As I recall the option is in the lower left of the edit window, but hopefully someone using ACR can jump in here...

thanks Bodog - I'll go ahead and convert so that I can get back into ACR and adjust my settings. Man, I tried to get everything right to begin with and missed a step apparently. DOH!

Photoshop will use your monitor profile without you needing to do anything.
As for the "Profile mismatch" dialogue box, you get that since (as Bodog said) you're using a different default working space in PS then what the image is in.

You set the default working space in PS color settings:

HTTP response: 403 | MIME changed to 'application/xml'

HTTP response: 403 | MIME changed to 'application/xml'

hey René Damkot - I was missing the ACR settings that Bodog pointed out. Quick question, do I have to change that setting in ACR EVERY time? I change the setting on one image and the next time I open Bridge and bring a photo into ACR it is set to Adobe RGB instead of sRGB.

Hmm...the way it's supposed to work is:

Open a file in ACR
Click the properties link
Change the color space, click OK
Click Done to close ACR and return to Bridge (or open it in PS and do things, but for this just click Done).

If you reopen this or another image, it should be set to the "new" color space.

dang it. I KNOW I opened a file earlier and it was set to Adobe RGB. Of course I cannot duplicate it now.

PS should remember what output color space ACR was set to last, and use that.