Illustrator crashes when I invoke the Place command

Up t this morning Illustrator was working as expected, but all of the sudden it keeps crashing when I try to place an image, at first I thought it was the .psd file I was attempting to place, or perhaps there was an issue with the Illustrator file itself, but after repairing permissions, restarting in single user mode, trashing preferences the issue still remains and now all needed is for me to nvoke the command, it stays there for a second or two and then it crashes.
I really don't want havng to go all the way and reinstall so if someone knows a solution to this, please help.
I'm running CS5 with the latest update on Mac Snow Leopard. I have 32gb of RAM so I don't think it's a memory issue.
Thanks!

Nothing different, I haven't updated anything in fact I was working with the same file when I tried to place the psd link and all of the sudden it crashed, so I restarted it and kept crashing from there.
I tried new epty documents to place anything random and keeps crashing, super weird.

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