Getting Ready to Place Images
It's much easier to use Smart Objects from Photoshop in your Dreamweaver site if you store the original Photoshop files in a folder inside the Dreamweaver site folder. Otherwise, Dreamweaver's site and asset management features will keep offering to copy the Photoshop files into the site folder, naturally assuming that you would usually want all of your image files inside that folder. You'll save a lot of clicking buttons in site management dialogs if you just create a folder for your Photoshop assets inside the Dreamweaver site folder.
I usually create a folder called psds inside my images folder, as shown in Figure 1. That approach fixes the asset-management problem, but creates another issue: You probably don't want to waste time uploading high-resolution assets, and you don't want your website visitors to have access to those files anyway. The solution is easy: Right-click the folder containing your Photoshop files and choose Cloak from the resulting context menu. Cloaked files and folders are exempt from synchronization, which means that Dreamweaver won't take the time to scan through cloaked folders when synchronizing, and the cloaked files won't be uploaded to the Web.