Photomatix works great if you are looking for that stunning HDR type look.
I tryed using the HDR in CS3, and it doesn't give that "surreal" look.
Also, there is a plugin
for CS3 that allows you to use Photomatix tone mapper alone, but still does not give
a great effect, but you may want to look into it.
As far as RAW file HDR, I have not tryed that yet, so I will be interested to see what
others have to say about that.
I have only done a few HDR shots, and tryed a few different programs, and so far
Photomatix seems to work the best for the look I was after.
Here is THE very FIRST HDR I did with Photomatix, not the greatest shot, but
shows the effect I got with being a complete beginner.