Can I run Photoshop Elements 2 on Windows 7?

I just got a brand new PC:
2nd Gen AMD Quad-Core A10-5700 Accelerated Processor at 3.4GHz
4MB L2 Cache
12GB PC3- PC3-10600 DDR3-1333 SDRAM memory 3x4GB
and tried to install Photoshop Elements 2.0 on it. I have not installed other programs or files on it, it has 2T empty harddrive. The program installed fine, but wont launch because "scratch disks are full." In order to reasign the scratch diks I need to go through the preferences, but I cannot do so as the program wont open. A bit of a catch 22. Any solutions? Or is PE 2.0 not compatible with the new coputers? Than you for your help!

Tevis11 HP would be the people who can give you the best advice on your computer configuration. That being said I believe your easiest, and less technical solution, would be to obtain Photoshop Elements 10.  Photoshop Elements 2 was released in 2002 and may not function on Windows 7 which was released in 2009.
If you wish to try Photoshop Elements 10 you can locate it at http://www.adobe.com/cfusion/tdrc/index.cfm?product=photoshop_elements&loc=en_us.

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