Official blog for the Windows Live Digital Memories
Important note to users of the Nikon RAW Codec for Windows with Nikon RAW files: We have received reported compatibility issues with their Nikon NEF files after installing Nikon’s RAW codec. Tagging the RAW files through Windows Vista or the Photo Info tool appears to cause these files to become unreadable in other applications, such as Adobe Photoshop. We have confirmed that these files can still be opened with Nikon Capture. Nikon and Microsoft are investigating the issue, and we will post an update when we have more information. In the meantime, we suggest that you exercise caution with your Nikon RAW files. If you plan on tagging them, make a backup of the file first, and verify that the tagged file continues to work with your other applications before proceeding.