I recently switched from Photomatix to Photoshop for my HDR use, when i found out that the "local adaptation" option on PS could be adjusted *doh!*
But I use bridge to bring in the files into PS, which opens the Camera raw files, which I then open into PS. Then automate HDR, it yells at me that using converted raw files can loose dynamic range. So looking at my options, I found that the raw conversion was using 8 bits, so i changed it to 16 bit, but it still warns me. the only option I have to not get the warning is browse the files and open them from there.
Does it REALLY matter? I mean i know if i had a 1DmIV with 16 bit ADC, but with a 1DsMII I think a 16 bit conversion (even 8 bits honestly) is enough for the 7 shot (-3 to +3) HDR conversion.
Ps does SUCH a better job at raw noise, but the alignment could use some work...