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I have started using a tool called Backhoe which allows editing of RAW files using a 3D window. Only useful for private SIMS, but I think easier than using Photoshop, and easier to show a preview to clients. There is a good blog on the Photoshop method, at Primdig .
I will try to put up a step bye step on Backhoe later in the week. I would love to get a step by step on the estate division using Photoshop, if anyone has done that.
Useful link to the SL Knowledge Base on using RAW files