Hey Pat,
not sure about the cloudy setting, frankly I'm a bit shocked that it came from pro photographers, first because it changes the whole balance to an incorrect setting (resulting in more editing at the end), second because the same can be achieved with much more freedom on an editing program.
A better way to get appropriate white balance is to print a sheet with neutral gray (chose 125, 125, 125 on RGB in photoshop and fill a page then print it) then from there you have more freedom of choice in editing and the colors are right, allowing you to get a more uniform warmer tone if so you wish.
As far as RAW editing in CS3, yes it has improved a lot since CS2, but Photoshop Lightroom is still miles ahead of it
