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when I open a project there is normally an import footage screen after the open project screen which shows the image and allows you to pick a new brush, layer or project option. This doesn't appear to work for psd's.
Is there a way to make it work, or is it a reflection of the multiple layer format of psd's always being loaded into a project?

When you open a project using the requester you don't get the window where you choose new/layer/brush session. Because a project is already a complex set of layers and parameters.
The window you are describing is the import window, which comes up whenever you import different types of media (images, footage etc) but not TVP and PSD files. PSD files are opened in tvpaint like a project, which means that you are preserving the layers information.
If you want to import your photoshop image as a brush or as a layer you can do one of the following:
a) save the photoshop image as a TIFF, PNG, JPG or any other format that tvpaint can import through the session window.
b) load you PSD file into TVPaint, cut the image as a brush (remember to tick the 'Display' box in the tool panel), and then you have the image as a brush.
c) Load your PSD into TVPaint and merge all layers, select the layer, copy (Ctrl C) and paste into the timeline panel of a project you wanted to import the PSD image into

here's a trick :
do as you were going to load a .jpg file (or .png, or ...) and click "OK" so the import footage panel will open,
then Browse ... and select a .psd file, now you should be able to load it as new project, new layer, or new brush.
but be aware that by this way, you will load only a flattened display of the psd file,
not the layered + alpha project, as with the "load project" command.

to keep at least the alpha information, as suggested malcooning,
export from photoshop in a 32bit format such as TGA32 or PNG32,
so you will be able to import it (them) as new layer(s) or new brush(es)
with alpha in tvpa.

ZigOtto wrote:here's a trick :
do as you were going to load a .jpg file (or .png, or ...) and click "OK" so the import footage panel will open,
then Browse ... and select a .psd file, now you should be able to load it as new project, new layer, or new brush

didn't know that. Not bad

Thanks for the info guys
Great help.