If you re running LR4.0, there is a problem with how LR 4.0 handles External Edits. You should D/L and install LR 4.1RC2 which should fix this issue.
Here is the External Editor setting for my PSP (X3). The major difference between yours and mine would be the path. PSP.lrtemplate
Code:
s = { id = "265E6816-83A0-41F2-97B5-B82FA01C474F",
internalName = "PSP",
title = "PSP",
type = "ExternalEditor",
value = {
externalEditingFormat = "TIFF_None_16_ProPhotoRGB",
externalEditingFormat_dpi = 240,
externalEditorFullPath = "C:\\Program Files (x86)\\Corel\\Corel PaintShop Photo Pro\\X3\\PSPClassic\\Corel Paint Shop Pro Photo.exe",
},
version = 0,
}
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