Heere what it states in xara.com: "Xara Designer Pro offers full support for importing and exporting Adobe Photoshop® PSD files including layer support (Designer layers are exported as PSD layers and PSD layers are imported as Designer layers), including alpha channel and 16-bit color and CMYK layer conversion."
I have CS2 legally and CS3 from my last employment which I haven't removed from my H/disc yet and have no problems with importing files which were designated .psd. I have had problems with some .tiff files and some LAB colour space but not all. If you have a Adobe account you can still download PS CS2, I think still, and there are serials available for you to use which are all legal which if you had room on your disc would be a good backup..
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