Photoshop CS5 JPG image open error

Question

I'm having a problem opening 99% of JPG images using Photoshop CS5 on  my PC. The images open but they are incredibly "scrambled" --- see  below screenshot. The same is true if I drag the file into CS5, open from within  CS5, or use Bridge. Every image I've opened, bar one, has been the same.
All of the images were taken using a Canon 40D in JPG format.
Even if I create a new blank document in CS5 it's affected by the same problem.
I  don't knwo if it's related but I'd had problems getting CS5 to load  (and Acrobat 9 Standard) until I sorted out Error 16 in the last hour.  It'd be plauging me for months.
Any advice would be greatly appreciated.

Answer 1

everything works fine
Words of joy to my ears!
Thank you for reporting your success.
Video drivers (and audio drivers too) are tenuous, at best. A simple OS hot-fix, or minor update, can render them obsolete. PS interfaces pretty deeply with the video drivers, and I see a lot of issues with Premiere Pro, that interfaces much more closely, and with both the video and audio drivers. An OS update can keep Premiere from even launching. With PS, things are usually not THAT drastic, but can ruin one's editing experience, and in a hurry.
Good luck,
Hunt
PS - thanks to Noel for the ATI Catalyst info. Being an nVidia guy, I seldom am up to date on ATI drivers.