set scratch disk to C:/ in the edit-preferences, reduce the history to 5 steps or so (down from 20) and maybe adjust the RAM used by the photoshop - all in "edit -preferences" If this was XP I would also say use the programm compatability wizard to emmulate win2k and not XP for this programme. I still have problems with my p/shop 7 after doing all this but not as many as before - mostly with the paintbrush and airbrush tools. Otherwise I have no hassles after doing this I still prefer my p/shop 5 as a result and so switch to 7 only when I need a feature not found in 5...a hassle but not a big problem for me.