Photoshop Elements 2.0 Help Please!

I just installed Photoshop Elements 2.0 and when I go to open it I get an error message saying that the program "Could not initialize Photoshop Elements because the scratch disks are full. This is definately NOT because of my computer's processing power, which runs off of XP has 3 Gigs of ram a 1.5TB hard drive (for my C: drive) and runs off of a 3.2 GHz microprocessor (so it's fairly speedy). I used to have photoshop on my old drive, now my backup (D:) drive, but I recently uninstalledit and reinstalled the program, using the disc, onto my new drive. I've tried cleaning up (using CCleaner) and defragmenting my drive, but nothing seems to work. Please help me out here.
Thanks, JohanasBrown
P.S. I don't know if this is an occuring problem on any of the other editions of Elements, but if it is, I'm sure it can probably be solved in the same way, so even if you don't have the 2.0 edition, any feedback will be greatly appreciated.
P.P.S. The photo below is of the error as it currently appears when I start the program and is also attached.

Elements 2 is a very old program but you need to ask in the Elements forum.

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