No - that one wasn't me.

Wow - those are nice specs to have CS3 lag for you!

All I can think is up the RAM? 1GB isn't that much for Photoshop - it's above minimum soecs, but still not too much.

CS3 uses 70MB of RAM (pretty sure that's what I'm reading), and x-amount (you said 700MB?) is allocated to CS3 for files, and keep in mind there are other operations running on your computer that take up decent amounts of RAM (I think Explorer - your desktop - takes up around 45 on its own). So, yeah, all I can come up with is up the RAM - it's the most immediate thing that comes to mind, and XP can handle and distribute 2GB no problem.

Does CS3 recognize that you have 2 cores?

Possibly out of date drivers being used with the new CS3? Maybe nVidia has a new one?

Any computer experts out there with ideas?
Hope that helps-
-Lew ;-)