CS3 file not compatible with Photoshop CS4?

My son uses Photoshop CS3 at college. He worked all day on an image (120MB), and saved it on a USB stick. When opening at home with Photoshop CS4, the "Reading Photoshop format" appears, then an error message "Could not complete your request because the file is not compatible with this version of Photoshop."
He has been burned before by a USB stick, but all the other files seem OK.
Is there a solution to this?

^First thing I did was make a copy.
QuickTime Picture Viewer (which seems to open other PSD files) says it is corrupted.
Adobe Bridge can read the metadata, gives no preview, and won't open the file.
Any other thoughts?

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