Thanks Scott. I tried the regular .psd format along with the "Maximize Compatibility" option. It still didn't work. I'm not sure why because this hasn't happened in previous versions such as when I worked with CS2 and took the file home to work with version 7. Do you think maybe I should try the .psb file option? I'm not even sure what that file was used for, maybe really early versions of Photoshop. Any other suggestions?

One thing I can think of is maybe I should download the latest updates to CS3, because I haven't downloaded any since CS4 was released.

-James