It has taken me way to long to get this tip out there but I here goes. Whenever I drag an image into Photoshop is doesn't allow me to edit it until I Rasterize the smart object. There is a way to 'Auto Rasterize' an image when it is dragged into photoshop so you don't have to do it each time. You can change this in Preferences and then you will no longer have to go through the pop up message, added up this could save some time.
Edit-> Preferences -> General
General -> Options
Always Create Smart Objects when Placing'
And there you have it. Hope it helps.