Imported Photoshop File Fails to Update

I have imported a layered file from Photoshop CS3 into Flash CS3. The original
import works fine but when I change the PSD file in Photoshop and try to update
it in Flash it doesn't get updated. To do the update I right-click on the
bitmap layer in the Library and select Update. A dialog is displayed showing
the name of the layer and at the bottom of the dialog it says "1 of 1 items
need to be updated." But after I click the Update button, it says "0 of 1 items
updated" and a question mark appears next to the Label in the dialog. And the
bitmap is not updated.

I have tried this same procedure with a simple single-layer bitmap and that
works so I'm guessing it must have something to do with the structure of my
Photoshop file. That file has a folder nested within another folder. The inner
folder contains several layers, one of which is the layer in question.

At one point, I thought it might have something to do with the fact that the
layer contains a SmartObject but I tried the same procedure on another layer in
the same folder which contains just a simple bitmap. That layer fails to update
also.

Is this a bug?

David Salahi