No, you perform actions on the RAW file but the RAW file remains intact, and your actions may be recorded with it (alongside it, but not embedded). Only when you export it in a file format readable by other programmes (jpg, tiff, psd ...) do those adjustments get embedded and taken forward as part of a new entity ...So if I understand correctly when I import my raw files to LR or elements I am not actually processing them as raw but as the file type that that program has converted them to? ie I am doing it completely wrong and could get a lot more out of using ACR?
No, you perform actions on the RAW file but the RAW file remains intact, and your actions may be recorded with it (alongside it, but not embedded). Only when you export it in a file format readable by other programmes (jpg, tiff, psd ...) do those adjustments get embedded and taken forward as part of a new entity ...