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 Adobe Photoshop Update - update your Photoshop 7.0 to Photoshop 7.0.1.
The most significant fixes in the 7.0.1 release include the following:

-Photoshop now saves alpha transparency data in Targa files in the same way it did in previous versions.
-If the color settings color management policy is set to "Off," Photoshop no longer asks to save changes unless other edits have been performed.
-The total ink now defaults to 300% as it did in previous versions of Photoshop.
-The color of white areas in CMYK files saved as JPEG files no longer shifts.
-TIFF files with LZW compression are now written correctly.
-Files made with Photoshop now work better with Microsoft Windows XP's automatic thumbnail generation.
-Favorites now function correctly in the Open dialog box.
-Picture Package no longer Locks up when it encounters incorrect file types while using custom page layouts.
-Metadata is better preserved in certain JPEG files.
-Photoshop no longer appears frozen when applying KPT3 filters.
-Photoshop now offers better compatibility with older Intel Pentium III hardware.
-Photoshop no longer produces a program error when resampling certain large 16-bit documents.
-An issue that prevented Photoshop 6.0 from opening certain files containing layer effects and edited in Photoshop 7.0 has been fixed.
-The Maximize Backwards Compatibility for Photoshop Files preference now correctly sets the state of the Maximize Compatibility checkbox in the Photoshop Format Options dialog box when you save a file as Photoshop (PSD) format. you can free download Adobe Photoshop 7.0 Update 7.0.1 now.
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