Why does this image place weird in InDesign?

We have a PSD file supplied to us by a customer.  When we look at it in Photoshop (CS3 or CS5, Windows XP) it looks like this:
When we place it in InDesign it looks like this:
It still looks like that upon export, any ideas why this might be?  I've tried flattening the file, it makes no difference, it only had one layer anyway.

Doh, I found a Photoshop clipping path on it...!

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