Louis ,
I see from the meta-data of your excellent "Little Castle" image posted on the internet that (at least on Nov 14, 2011), you had Photoshop CS2 only ...
So, it seems that you are looking at these thoroughly disgusting Adobe Options :
(1) Fork over a huge amount of money for PS CS6, with all of Adobe's insulting new policies that (as I understand it) may well force you to pay ongoing license fees to Big Brother for continued functionality and specific features; or
(2) Fork over a huge amount of money for an all new computer (or, at least an all new Windows OS, asuming that the BIOS updates on your present computer's system-board has actually been updated for Win7 compatibility, which is probably rather unlikely), and likely (also) have to re-purchase a pile of new software that will run on Win7, and likely face the fact that perhaps a fair number of your favorite resident software applications are now obsolete, and would be lost to you forever ... just so that you can purchase and run Lightroom 4.x. The $150 purchase price would represent a tiny fraction of the additional hardware/software costs that would also be involved ...
I myself am in a similar "boat". My system is WinXP Pro SP3, and my roughly 3 year old system board BIOS never has not (and never will) be updated to support Win7. The last OS I would want to have to switch to is Vistsa (ugh), which might have a chance with the existing BIOS updates - but I would myself probably have to purchase (at least) a whole new system-board (if not a whole new entire tower, to avoid the musty grief of dealing with such upgrading rats-nests ... not to mention the poop-pile of software applications that I would (also) lose by losing my WinXP system.
Not only is DNG a dubious way to go in the first place (as oposed to the original out of camera RAWs), but it is also true that something as dated as PS CS2 likely falls short of what the the DNG Converter (compatible only back to Camera RAW 2.4) can viably do for you. A "sticky wicket" ...
To escape this enslaving regimen, perhaps alternate RAW processing pathways might be more interesting and ultimately viable ? Who wants to be Adobe's B-I-T-C-H, anyway ? Give 'em hell !