Unfortunately, photoshop cs4 can't be updated past camera raw 5.7, so that's why you get the failed message, because camera raw 6.7 won't work with photoshop cs4
Other than updating to photoshop cs6/cc, you could use the free adobe dng converter to convert your files to dng copies, which photoshop cs4 should open.
Which version of mac os x are you using?