Lew--you are not going to be able to color a grayscale photo with a spot color and have it output in a spot color in Xara. Well, unless someone knows of a way because I do not. I would be happy if I am wrong.

Normally, most all spot color work I compose in PagePlus. Vector work is pretty much all done in Xara, but all components are taken into PP and composed there for output.

However, when it comes to duotone images, it needs to be done in InDesign. Whether the PS output is PSD, EPS or PDF, ID will output the spot color whereas just about nothing else will.

take care, Mike