Can't save layered .psd files in Photoshop CS3

I noticed yesterday that I can no longer save layered .psd files to any folder. What does get saved is only a generic file symbol.
I'm using a Dell 8200 computer, 1GB of RAM, IntelPentium4 processer, Windows XP Professional,and a Canon MP780 multiple function printer.
Please help.
George Masi

Is it saved incorrectly, or is the problem just that the icon is the generic one. In other words, can you A) click to open the file from the desktop. And, b) if you can't click from the desktop, can you open the file from within Photoshop, and see the layers correctly.
If B works, and A does not, then this means your Windows has lost the association between PSD files and Photoshop. You can often correct this by right clicking the file, and choosing Open With, with the Always open with this program field checked. There is also a way to set the icons back up, but this is more complicated.

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