Merge to HDR and Photomerge have stopped working. Process never starts!

I have a problem with Merge To HDR and also photomerge. The issue appears to have the same cause. Basically what happens is as follows:
1. Open Photoshop
2. Goto File->Automate->Merge To HDR Pro
3. Dialog box appears.
4. I select the files stored on HDD
5. Click OK
And then nothing happens... No screen appears, no progress bar, no dialog box of any kind. Photoshop continues to work fine as if I had just opened it.
The other issue is even more strange.
1. Open Photoshop
2. Open the files that I wish to merge (saved on the HDD)
2. Goto File->Automate->Merge To HDR Pro
3. Dialog box appears.
4. I select the 'Add open files' option
5. Dialog box appears telling me that the files must be saved before they can be merged.
The exact same issues occur with Photomerge as well.
I am using a 15" MacBook Pro (Early 2011) with 4GB RAM, 500GB HDD (100 GB free), 2GHz i7 processor. Currently running OSX Lion 10.7.2. My current Photoshop version is 12.0.4 and I am running it on 64 bit (although have tried in 32bit mode).
This is a link to a screencast I made which documents the issue (with a completely new user): http://youtu.be/6_jltW-f34Q
I have had this issue before but was never really resolved. I contacted adobe and was told to try various things like creating new users, deleting preferences and even uninstalling and reinstalling my entire CS5 package.
The problem resolved when I upgraded my Mac to OSX Lion, although I have no clue why. Now the issue has returned and is extremely frustrating.
Cheers, Jeremy
EDIT: Probaby should've said how do i fix this?

I am having the same problem> My HDR & Photomerge are broken!
Recently the functions for moving multiple images into HDR & Photomerge via Tools and Automate is not working. When I try I get dialog boxs that are incorrect and the software will not allow it.
I've update, removed added items from Photoshop, have plenty of memory devoted to Photoshop, spent hours working with Adobe tech, now waiting for an answer from them takes 72 hours.
Has anyone else experienced this and have you found a solution?
HELP ! PLEASE !

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