Photoshop Elements 4.0 can't edit graphics.

When I start Photoshop Elements 4.0 and load a jpeg to edit, very often no matter which tool I click, all I have for the cursor is the "hand" symbol, which does not do anything. The most I can do is "crop", but that gives me an arbitrary frame, not something I can choose. At first I was able to fix this by going to Windows add/remove and choose "repair". However, the last time I did that, it dodn't make any difference; I still only got the "hand" as a corsor and couldn't do anything with it.
Is there a fix, or is this a known bug in Elements 4.0? Do I have to find a later version to make it work? I was doing fine with Elements 2.0, which did everything I needed, but when I upgraded to a bigger hard drive, it crapped with the dreaded "scratch disk full" error and I could find no way to fix it.

More often than not, the unwanted presence of the hand tool is due to the space bar on the keyboard being stuck.
One can engage the hand tool via the space bar, which should snap back (up) when released.

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