Photoshop Elements 10 Organizer freezes shortly after startup

I have about 35000 pictures with avg size of 7Mb and use a single catalog to manage these.
I created chronological albums by filtering on 6 month time periods, i have about 16 of these.
When I created this initial setup, the organizer was working fine. not since then.
e.g.:
-When I'm trying to download new pictures from my camera, I can open the Photo downloader program, it detects the camera and the pictures on it, I can set to location to download to, but none of the other settings, like 'Rename Files' and the Get Media button doesn't respond, even though it looks active.
-When I try to browse through my albums, I can select one, but then the application becomes unresponsive and I cannot get it to do anything anymore.
I'm also observing continuous harddisk activity and the Windows Task Manager is showing that is caused by the PSE Organizer.
I'm running Windows 7 64bit, have 8Gb memory, and 2 Xeon quadcore 2.33 mhz processors
I welcome any suggestions as to what could be causing the problem.

Please refer to blog for improving performance: http://psekb.blogspot.in/2013/04/how-to-improve-pses-performance-please.html
Hope it resolves the issue.
~Andromeda

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