I created an image in Photoshop CS that contained several layers of
text with blending options.  I want to be able to import this into
After Effects 6.5 without losing the style properties.  I know that
After Effects won't directly import these effects, but i'm looking for
a workaround.  I tried, Flattening the image but then i lose all the
layers.

russellz, AE 6.5 will preserve your Layer-styles and Transfer-modes as
long as you import the CS2 PSD as a "Composition". Importing as
"Footage" will either flatten your PSD, or make you choose a sinlge
layer to use.

Hope this helps, Ethan

First, i do not have CS2, i have CS1 (i don't know if that makes a
difference).  I am also importing it as a composition.  However, i
still lose all the style attributes.

Ok here's how to get around it. First save a backup of your psd so
that you can edit your piece should you want to at a later time. Then
take the original and on each layer that has layer styles first make a
new layer select the layer with the style on it now. If you look next
on your layer pallette to the right of the eyeball there should be an
empty box on the layer you just created. Click that and a chainlink
will appear. Now in the top right corner of the layers pallette you'll
see the X to close the window right below that you should see a
triangle pointing right. Click on that and then select merge linked.
The two layers should have merged and there shouldn't be any
layerstyles on it now. Repeat this however many times you need to then
save it. Now open it AE and select import as composition. That should
do it for ya. Unfortunately there's not an easier way to do this.
Perhaps in the next version of Photoshop or AE they'll fix it however
I have heard that they are planning to start doing more of the
creation in AE itself than Photoshop anyways I'm rambling now but I
hope that answered your question.

That works great, thanks!

I just downloaded the trial of CS 2 and there is an even better way to
do it.  If you convert the layer into a smart object you can apply any
effect to it and it will show up in after effects.