Maggie,
I managed to drag the My Artwork folder onto my desktop so I just load them from the CD into photo editor as normal and then save using the My Artwork folder as the save destination. It appears to like both .jpg and .png files so far. Next time I open the My Craft Studio software they are in the folder along with all the original files.

I'm not sure if you will be able to do it if you can't get the folder onto your desktop. Did you manage to drag the file across?

Jo xx