MicrostockGroup

I recently got a Nikon D7000. I also have Photoshop CS3, which I use for editing, but it can't read the Nef files from the D7000 so have to convert them to DNG to edit in PS3. I don't have Lightroom so really am not familiar with it. I don't want to pay the price for PS5. My understanding is Lightroom will open the NEF files without having to convert..correct me if I'm wrong.

So my question is what do you use most with editing...Photoshop or Lightroom?

I use Lightroom to process the RAWs . I like its interface a lot for that.  Everything else I do in Photoshop (CS4).  So I guess my answer is that I use both, but use PS more

I use both - Lightroom to organize and select which files to work on; RAW conversion parameters, including CA removal, vignette removal and any highlight recovery are set in Lightroom and then I edit everything (for stock) in Photoshop. I keyword in Photoshop - i.e. I want the metadata in the PSD file, not just the Lightroom database (and I'm not much of a Lightroom guru, so there may be a way to do the keywording in Lightroom and have that move over to get written into the PSD file).

If I had to give up one product for whatever reason, it'd be Lighroom.

I don't think you can have a straightforward workflow from Lightroom into Photoshop (i.e. just say edit in Photoshop rather than exporting a file) when the ACR versions are different - i.e. if you don't upgrade Photoshop but just buy Lightroom. So it'll work, but it will have an extra couple of steps.

Same here, LR for cataloguing, sorting and minor editing and keywording, then PS (CS4) for the rest. These two work very well together for me. I also started converting to dng when CS3 no longer read my camera's files (Canon) and even after I upgraded to CS4 continued to work in dng...just got used to it I suppose. I convert the images directly to dng upon import into LR so no time wasted with file conversions late on.

Like most, minor changes from Lightroom for RAW files. I like the Lightroom interface that Photoshop Camera Raw. It is more intuitive. Retouching in Photoshop and the latest, the keywords in Bridge (for me it is more convenient to do so in groups, and especially for sorting, searching, ... files).