cpd From Australia, joined Jun 2008, 4879 posts, RR: 44 Reply 1, posted (3 years 2 months 2 days 3 hours ago) and read 2072 times:
I do the levelling in Photoshop Camera Raw, along with the crop. I also do WB adjustments there, along with exposure and black point tweaks.
I then import it as 16bit SRGB image (a smart object). But, always - I end up with a slight border around the image! So I have to scale the image larger than the canvas size to prevent it. Annoying. Only seemed to start happening when I switched to CS4 Master Collection from CS3 Web Premium.