CS4 unable to place image ERROR: The file is not readable

Hi All,
I have been experiencing big issues with Illustrator CS4 and placing images into a document.
Basically I will be working on say a packaging project and after about the 4th image being placed I will get the error message The file is not readable I select OK (the only option available)
RESULT: no file placed no where to go?
I then have to save the document, close Illustrator, re-open, open the document and then the image will usually place (not always first time though and sometimes I will have to reboot the whole system!) but then the 5th, 6th, 7th image after that I have to follow the same procedure!... The image files are fine, 300ppi, 20-30MB max, PSD, TIFF, JPG dose not matter all follow the same issue... but eventually after a lot of rebooting and loading the so called un-readable files will go into the document.
Also the image will place sometimes but the same error message will appear on attempting to embed the image!
All very annoying and massively time consuming!!!
To top it off since the above, random AI files when loading up will crash Illustrator out... again after a reboot the same file will open fine with no problems???
My system:
OS: Windows 7 Ultimate (64bit)
Processor: Intel Core i7 CPU 920 @ 2.67GHz (quad core)
RAM: 6GB
GRAPHICS: NVIDIA Quadro FX 570 (3GB) (Dual monitor)
DVD/CDR
PRIMARY: ATA 500MB
SECONDARY: ATA 1Tb
Im desperate to get this sorted... other wise its back to my old system... slow but reliable!!
Many Thanks!!

Well, I just encountered the same issue using Illustrator CS5...getting the "The File Is Not Readable" error message...first time that's happened in the 14 years of using the program. It seems the file size was too large for Illustrator (or one of my computers) to handle. So I opened the file using one of my other computers and deleted the unused layers to reduce the file size. Originally, there were 6 layers with 3 different versions of the artwork and what I ended up having to do is create 3 separate files rather than having it all in 1.
Hope this helps!

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