> Save with fonts embedded, vector data retained but turn off layers.
> Place that in your ID document and use file>export to create your PDF
> from InDesign.
Note that you don't *have* to turn off layers (if the filesize of the
PDF isn't a concern to you); if you retain the layers you can open the
PSD back into Photoshop with all the layers preserved and editable.
Also, be aware that sometimes these PDFs placed into InDesign can
sometimes take a while to spool to the printer - I had one file where
the client included 15 or 20 text layers, plus one raster background
layer. This file, saved as a PDF and placed into InDesign CS, took
almost ten minutes to print.
Brian