Illustrator :: Image Links Not Auto-Updating?

I updated to Illustrator 17.1, and now my image links no longer auto-update after they have been edited in Photoshop. As most should know, this has long been a feature: tweak an image file in Photoshop, save it (same file name), and Illustrator will recognize the image has been edited and ask if you want to update it automatically. Hit 'Return', as 'Okay' is the default dialog button action, and image updated: one step. Without auto-update, user must manually access link palette, select edited image link, and 'Relink' the image ('Update Link' unavailable here now as well): three-plus steps (including identifying and selecting image file after 'Relink').