Ok, I'm REALLY new to SimPE. I don't really use it for everything it was intended. Mostly just to edit small things on mysims. But I wanted to use the Photo Studio and its greyed out.

I configured my paths...and I have CEP installed. Those are the only two things I found about this from a tutorial here.

http://sims.ambertation.de/tut_ps.shtml

Anyone else know what I'm missing? Oh and I installed the templates, thinking maybe that was why.

Thanks

Did you set the savegame path to include your specific username? So, for example:
C:\Documents and Settings\simsample\My Documents\EA Games\The Sims 2\
Instead of
C:\My Documents\EA Games\The Sims 2\

I had the same problem. But when i installed CEP and restarted SimPE it worked!