Color profile problem after installing CS4

Question

OK.
First, let me post these side-by-side comparisons:
As you can see in Image 1 (the "before," left-side photo in each comparison), the colors and overall appearance are distorted. I've read things about gamma but it's all confusing to me. This is surely a color profile problem, right? The transition among pixels that involve colors of yellow and gray is rocky, grainy, and the flat out color is just wrong. Now this color problem affects pictures when opened in both Photoshop 7.0 and the standard Windows Photo Viewer. Meaning, whenever I open pictures in both PS 7.0 and Windows Photo Viewer (my default viewer), this color problem totally messes up certain photos and really damages my ability to edit. I'm an avid photo editor and it's imperative I have proper color display so that I can accurately edit. Keep in mind that certain pictures do not take on this error. When a photo is generally brighter, the distortion is basically invisible. It's photos that are dark or have dark portions in them that display the distortion.
*Note: I took these before-and-after pictures with my camera, because screencapping would not work, since you all don't have the same color profile issue on your computer. That's the only way I can show you!
HOWEVER, when I open photos in another standard Windows application, "Microsoft Office Picture Manager," the color problem is magically erradicated altogether. It shows photos as I've been seeing them all along, until I installed CS4 about two weeks ago. Before installing CS4, everything was fine and I had been using Photoshop 7 for years and have never had a problem. I'm guessing CS4 messed something up. It had to have. Just FYI, I uninstalled CS4, hoping it would reverse the problem. But still, the color issue persists in PS 7 and in my regular Windows Photo Viewer.
Since images display their true form in Windows Office Picture Manager, I don't think I need to calibrate my screen. Or do I? I've read things about it, and to some people, it's not necessary. Right? Okay. I really hope someone can give some advice! Thank you!
P.S. Here's the original photo. On my screen, it looks distorted when opened in photoshop or opened w/the viewer. However, here on Firefox, it's fine.

Answer 1

You should try to familiarize yourself with the concepts of color management.
It's kind of too in-depth a subject to walk you through from a cold start here...  There are a lot of good resources out there to help you get started.  For example, in just a few seconds Google turned up this:
http://www.adobepress.com/articles/article.asp?p=1315593
The one thing to remember is this:  There is NO quick solution, easy set of defaults, or direct answer to making your setup do what you want without your having to understand color management.
People may tell you to calibrate your monitors, or use a particular color profile as a default, or whatever, and they may have good, solid reasons for telling you those things, but if you don't attempt to get your mind around color management it will always seem as though something isn't working right, or is simply magic, which will be frustrating to you.
Here are some basic questions to ponder:
What image color profile is your image carrying?
Is your monitor a wide-gamut display and do you have a color profile set up for it?  What kind of monitor is it?
What version of Windows are you running?
Do you know the difference between a color-managed app and one that is not color-managed?
Which of the apps you're using/showing above are color-managed?
What are your settings in Edit - Color Settings?
Take some time and do some research, get your head around the concepts, and it will all make more sense I promise you.
-Noel