Illustrator CS3 - "Not enough memory to place the file."  Help!!!???

I have a new machine running XP Pro 64.  Intel i7 processor, 12 gb ram.
I am trying to place a fairly small Photoshop image (with layers) into Illustrator CS3.  I have done this countless times with XP 32 bit os.
But now, I cannot place even a small Photoshop image into Illustrator... I keep getting the error "Not enough memory to place the file."
I tried the suggestion of 'right-clicking' the Illy launch icon and going to properties/compatibility and then selecting "Run this program in compatibility mode for..."  and then I check marked Windows XP.
Someone else said this worked in Vista 64.....but it DID NOT work for XP 64.....dang it.
Any suggestions???
Thanks

On Mon, Oct 26, 2009 at 04:37:08PM -0600, Todd-sta uttered:
Well..... I just tried the same function on my 64 bit Leopard operating system on my MacBook Pro just for kicks.  Worked flawlessly!!
So, why won't it work on XP 64 bit? Is this a case of 'the mac os is just better?"
Talk about flame bait -- You trying to start the platform wars again? ;-D
Can anyone tell me if they can place a Photoshop image from WINDOWS 7 64 bit OS into Illustrator without issue?  We're talking 'PLACE' .... not paste.
Don't know about Windoze 7; but that operation works in Vista x64. XP x64 is
quite flaky at times. It was never finished IMHO.
Sure would like to know.  I'd upgrade if it made the difference.
LOL
end

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