With large D800E files, I am seeing my PSD files sometimes growing beyond the 1GB. Although CS6 is supposed to save files in PSD format up to 2 GB I keep getting saving error while saving them as PSD. I can save in PSB fine.
Is there some setting in CS6 i need to change?
Any disadvantage in moving to Tiff format? (In tiff options I chose to not compress and keep layers intact).
There's no longer any real reason to use the native Photoshop file format - psd. Tiff does everything psd does and bumps the file size to 4 gigs. If you do decide to compress your tiffs, use zip, especially if you've got 16 bit per channel files, as LZW can often save larger files than uncompressed with those. If you know you're going to exceed 4 gb, then you have to use psb, but because of the compression schemes it uses, the save times are quite long.
You should be able to save your psd files with no problem up to 2 gb. Sometimes, when Ps is making the calculation for the projected file size (remember that psd files are compressed) and you're already close to the the 2 gb limit, you can get a file too large error, or worse, it can save, be over 2 gigs, and not let you re-open.