Could not place because the source rectangle is empty

Up until about 3pm yesterday, illustrator CS6 and Photoshop CS6 worked without a hitch however at 3pm, I all of a sudden get the message 'Could not place because the source rectangle is empty'. All I was doing was dragging one of our company logos into Photoshop from Illustrator from the .eps file that holds all our graphics. I have done this hundreds of timnes before and ALWAYS either do it this way or highlight an image in Illustrator and paste into Photoshop. Either way I am still getting this error message.
Nothing has happened in the settings (that I am aware of) and google gives me numerous results all of which point at the fact that i may have a corrupt .eps file. However that is not the case. If i try and drag and drop or copy and paste various different fiele from .jpg to .png and .eps or .ai I have the same issue.
I uninstalled Photoshop this morning then re-installed to see if that would fix the issue but no such luck.
As it is, it is affecting my work and sure there are workarounds ie. if I go to file/open and open any file that way then that works but that is no good with an eps file that holds many seperate graphics as once that is opened in Photoshop, all those seperate images become one image.
Can anyone help with this?

Thanks for the heads up. To be honest, I don't recall ever setting any preferences so shouldn't be a problem resetting them. You do mean the Photoshop preferences don't you?
FYI, the version of photoshop I had in my other office (where I didn't encounter this issue) was one below the version I had (not as in CS5 but the software version I was running) the issue on and there was an update so did that update so now both machines are identical and running exactly the same OS and Photoshop version but still have the issue.
Willtry resetting the preferences tomorrow when I'm in the office.
Will keep you updated.
Thanks for the help so far.

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