Photoshop CS3 "Not enough scratch memory available" error.

Hi,
I am Using Adobe Photoshop CS3 Version 10.0 and I keep getting the error "Not enough Scratch memory available to perform this action" whenever I try to Save a .psd file to a .jpg/.jpeg file.
I did go to Edit -> Preferences -> Performance, and add my other two partitions as scratch disks, also put up my E: drive as the primary scratch disk on the top of the list (Which has 80GB's of space) but I still keep getting this error.
My file (the .psd that i am trying to save to a .jpg) has a total size of 56MB and 300dpi with 4 or 5 layers in it and the target jpg file is supposed to be 12inches by 20inches.
Some other things I have tried is celaring the %temp% folder, Defragmenting my Hard Drive(s), Disk Cleanup, set my System Page file to 4GB, but all this is of no use.
I know that I have enough RAM and Hard disk space so please help me get rid of this problem.
Also, this maybe a stupid question but, does the type of RAM and Processor you are using effect this? I have a DDR RAM.. 2GB, I know its outdated, its our office computer I am working on.. My Processor is a Core 2 Duo which isnt bad.
HELP PLEASE!!!

I think Varun is mistaking one's forums Join Date for a post time stamp.
I'm moving this post from this forum for photoshop-dot-com (an online portal) to the correct forum for Photoshop pro users like yourselves.
FYI, the correct forum URL is: http://forums.adobe.com/community/photoshop
Since you've posted in this forum for Photoshop.com, you may receive additional posts in this forum unless you update your profile. After signing in on these forums, go to Your Stuff > Forums, and disable any forum you don't want to watch.
Kind regards,
Charlie

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imagex reported:
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side note, i am able to connect on his pc with a standard user account so something with his windows profile that's corrupted, anyone know?
Best regards, Joe C Partner Online Technical Community ----------------------------------------------------------------------------------------- We hope you get value
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Photoshop CS3 "Not enough scratch memory available" error.

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