Cannot save any file opened in Photoshop CS5

Hi all, looking for some help...
I've got a 27-inch Imac running:
Mac OS X Lion 10.7.1
Processor: 2.8 GHz Intel Core i5
Memory: 4 GB 1333 MHz DDR3
Graphics: ATI Radeon HD 5750 1024 MB
Storage: 1TB HD with 920 BG free
The problem is (thus far) exclusively with Photoshop CS5. I have the latest patch installed (12.0.4). No matter what file I open in Photoshop, I can't save. When I try to save, I get the following error:
This error occurs regardless of file type chosen, whether I 'save' or save-as' and both if I start a new file or if I try to alter an existing file. I have run disk permissions and disk repair on my mac with no luck thus far. I have googled this issue, and found lots of discussions with a similar issue involving the Photoshop preferences file. So, I deleted my preferences file and started over, no luck there. I have gone through and manually checked for locked files—the files are not locked. I have tried saving in as many locations as I can think of, still no luck.
This is a legit, updated copy of Photoshop CS5 on a relatively new computer with ample space... and it worked yesterday afternoon! I am wondering if uninstalling and re-installing Photoshop is the answer, but I thought I'd try here first.
Thanks in advance for your help!
Lindsay
PS: I have read this thread: "Could not save because write access was not granted." Unfortunately it doesn't help me, because I can't save-as either, and I am not working off a server.

Thanks Zeno -- you are the first person ever to answer my question "how big" with a precise amount.
I have never actually heard of an "exabyte" before and am blown away by its size of a billion gigabytes... there are a number of other interesting size limits according to the text towards the bottom of the Adobe tech note http://kb2.adobe.com/cps/404/kb404439.html for which you sent me the link, but which I have never before been able to get from Adobe tech support.
An exabyte seemed so big that I needed to confirm it before I could believe it. From various sources including Wikipedia I was able to confirm that...
1 Exabyte = 1,000,000,000,000,000,000 Bytes = 1018 bytes = 1 billion gigabytes = 1 million terabytes. There's an interesting table of all the names of different data sizes, from kilobyte to yottabyte, at http://en.wikipedia.org/wiki/Exabyte
So if 4 exabytes is the max. size of a PSB file, I think it will just about be big enough for my puny little 16Gb file.
Thanks again for solving my problem.
Noel

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