Cannot open psd file in Illustrator

One of my users is getting one of two errors when she tries to open a psd in Illustratror CS5.  One error say "Cannot open the illustration",  the other error says "The file filename.psd is in an uknown format and cannot be opened."  Furthermore, she is unable to use the "Place"  function in Illustrator.  This appears to be profile specific.  When I log on to her machine as myself.  I am able to open all *.psd files.  She claims that everything was working fine a week ago.  No changes have  been made to the system.
Thanks in advance for any help

I would say it is a permissions problem.
Obviously Illustrator cannot access the file so it does not know what you want it to do.
Try repairing the permissions, make certain she has not locked the files on her account
and try this as well but only in her account.
Mac
1. Quit Illustrator.
2.Go to User/username/Library/Preferences/ Adobe illustrator CS4 Settings and trash the settings folder, the whole folder not just the contents of the folder..
3. Start Illustrator. Illustrator creates a new preferences file.
PC
1. Quit Illustrator.
2. Rename the AIPrefs file (for example, to AIPrefs.old) in the Users/
(user)/AppData/Roaming/Adobe/Adobe Illustrator CS3 Settings folder.
3. Start Illustrator. Illustrator creates a new preferences file.
But her permissions have to be repaired if it can't be done by the utility then manually

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