Ok, now for the somewhat more complicated approach, but sure to give you more control.
We start with our color photo that we want converted to black and white.
We want to create a "Hue/Saturation" adjustment layer. First, make sure your "Layers" palette is open. If it is not, go to the "Window" menu and select "Layers." Go to the bottom of the the "Layers" palette and click on the "Create new fill or adjustment layer" icon. It looks like a half moon and is in the middle of the other icons.

A menu will pop up, select "Hue/Saturation."

The Hue/Saturation dialog box will pop up. Just click "OK" for now.
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