Photoshop CS2 to 7 compatibility

Hi everyone,

I hope this is in the right forum place..
I have this problem with compatibility from CS2 to 7 and I can't seem to figure out what's wrong. I have a file with many layers made in CS2 but when I open it in 7, they're all merged - all I see is the background layer. Now before you ask, I know about the file handling settings and I made sure I have enabled "maximize psd and psb file compatibility" and version cue workgroup.
If you have a suggestion, please let me know, I'm making website templates and must also give the photoshop file.
Thanks in advance!

well I found out what the problem was and I'm posting just in case someone has this problem again. I created the file in PS CS2 at 16 bit color mode, and even though I selected 16 bit in PS 7 it still flattened all the layers. So I made a new file in CS2 at 8 bit, dragged all the layers, save it and it works!:D