Cannot resize CS2 objects, please help!

Question

Hello,
I'm new to this forum, hopefully someone here can help me.  I have worked with every other version of Photoshop and have never had this issue.  I just installed (and updated) Photoshop CS2 for Windows.  When I attempt to do a simple resize of an image object, it doesn't work.  The diagonal arrow handler shows up and the bounding box changes as if it will transform, but dragging by the corners do nothing.  I've tried doing it manually, through the toolbar (Transform -> Scale, and Transform -> Free Transform), via CTL+T...nothing.  A couple of times it did allow me to resize but didn't want to let me when I held Shift to keep the ratio intact...but now it won't let me at all.
The other thing it's doing is when I drag the image object to move it to the corner of the canvas, the image follows my mouse but when I let go to place it pops right back over to where it was, as if there is some hidden anchor.
As a side note some days I have to open Photoshop several times before I can create a new image or open one, because when I try to nothing happens at all.  So I don't know if the image resizing & moving issues are part of this bugginess or if it's a result of some setting Photoshop employed in CS2.  I have all the Snap to options turned off and have looked all over for a setting that might be causing this, to no avail.

Answer 1

Thanks, Bart - Yes, I did reset the preferences per FAQ's.  This morning I tried repairing the installation but the problems still existed.  I then completely uninstalled the program and reinstalled it fresh, ran all of the updates again, and tried to play around with the tools I was formerly unable to use.  Everything appears to now be working correctly (although I'm not 100% convinced yet!)  When I installed it the FIRST time, I walked away from my computer while it was installing the Adobe updates, and Windows rebooted on me due to automatic Windows updates.  I'm wondering if that somehow corrupted the installation, as I was having all of the following problems:
-crop wouldn't work
-clipboard wouldn't import things to paste most of the time, errors
-transform and resize didn't work
-problems creating new files or opening files (no response)
-lasso would reset in the middle of tracing
-paintbrush strokes would work and then disappear
-clone stamp would start working then disappear
-flatten image didn't work
There was other random bugginess here and there.
I will be using the program frequently today and will update this post at the end of the day with whether or not the problems seem to be gone for good after this morning's reinstall.