LiveMotion and Photoshop integration
You can import PSD files into LiveMotion or drag a layered Photoshop document directly into LiveMotion and animate it as a regular LiveMotion object. LiveMotion preserves layer sets, masks, layer effects, etc. and allows progressive conversion of layer sets into objects, groups and sequences. The content remains editable in Photoshop.

Method:
Step 1: Import a Photoshop document using File > Place or Cmd/Ctrl + I. [You can also drag the Photoshop document into LiveMotion .]
Step 2: If it contains layer, convert layers into objects or sequence using Object > Convert Into Objects > objects or sequence. If the layer in turn is a layer set then you can again convert each layer set into an object by selecting the layer set and running Object > Convert a second time.

Note: If you wish to convert the imported document to all individual objects till possible, then you can use an automation script. Select the object and Automation > Scripts > Convert All Into Objects.

But keep in mind that using the automation script "Convert All Into Objects" can be extremely memory intensive for Illustrator or EPS files that contain a large number of objects and/or sub-layers.  Users may encounter memory errors or long processing times when running this script with these type of vector files. This is especially true on Macintosh systems running OS 9.x (OS X and Windows systems have better memory management capabilities).

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