Photoshop Elements 4.0 won't save changes for IPhoto 6.0.2.

At some point following installation of IPhoto 6.0.2, a problem appeared during editing photos with IPhoto preferences set for opening in Photoshop Elements 4.0: When I hit "save", the following dialog box appears: "could not build a preview because of a program error." My edited changes are lost and don't appear back into IPhoto. (On force-quitting PhotoShop Elements, I now CAN properly save the changes back to IPhoto.) Or sometimes Photoshop Elements “unexpectedly quits” during the editing attempt.
The problem was not solved by reinstalling Photoshop Elements 4 and is similar on two different computers (IMac G4 and PowerBook G4).
I assume the problem resides with IPhoto (presumably v 6.0.2), not Photoshop Elements. Even though I have my IPhoto Library backed up on a Lacie external hard drive, I've hesitated tweaking my IPhoto program (such as to ditch preferences or reinstall).
Any suggestions?
PowerBook G4   Mac OS X (10.4.6)  

Lori, thanks a million! The answer does seem to have been found in the Adobe forum you suggested: It suggests going to user>library>preferences folder and delete Adobe Save for Web prefs. A friend also suggested saving Photoshop Elements edited changes by using "save as" as opposed to "save" which gives another (slightly tedious) fix that translates back to IPhoto.
John
PowerBook G4John   Mac OS X (10.4.6)  

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    0x2025f700: No symbol
    0x20385308: No symbol
    0x02e3cbe0: @executable_path/../Frameworks/AdobeOperaMgr.framework/Versions/A/AdobeOperaMgr : OMInitialize + 124
    0x02e3cd14: @executable_path/../Frameworks/AdobeOperaMgr.framework/Versions/A/AdobeOperaMgr : OMCreateBrowser + 68
    0x00872858: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : PercentageWindowVisible(TWindow*) + 320496
    0x00871840: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : PercentageWindowVisible(TWindow*) + 316376
    0x0087ac40: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : PercentageWindowVisible(TWindow*) + 354264
    0x0087beb8: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : PercentageWindowVisible(TWindow*) + 358992
    0x00870cf4: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : PercentageWindowVisible(TWindow*) + 313484
    0x000a0150: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : IsTargetInView(TView*) + 3616
    0x000a0150: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : IsTargetInView(TView*) + 3616
    0x000a0150: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : IsTargetInView(TView*) + 3616
    0x0009f1a8: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : NewObjectBySignature(unsigned long, CStr255 const&) + 143648
    0x00841014: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : PercentageWindowVisible(TWindow*) + 117676
    0x00840fb4: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : PercentageWindowVisible(TWindow*) + 117580
    0x00e02064: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : XPEPLaunch::StartApp(unsigned short const*, unsigned short const*, unsigned short const*, void**) + 2386236
    0x00e0008c: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : XPEPLaunch::StartApp(unsigned short const*, unsigned short const*, unsigned short const*, void**) + 2378084
    0x00040b80: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : LookupErrString(short, short, ZString&) + 89920
    0x00b5d8f4: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : PercentageWindowVisible(TWindow*) + 3380364
    0x00b55fc0: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : PercentageWindowVisible(TWindow*) + 3349336
    0x00002d68: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : dyldstub_bindinghelper + 1096
    0x00002b00: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : dyldstub_bindinghelper + 480
    0x00002894: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : __code_start_ + 512
    0x000026c4: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : __code_start_ + 48
    0x00000000: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : + 0
    PPC Thread State
    srr0: 0x00000000 srr1: 0x00000000 vrsave: 0x00000000
    cr: 0xXXXXXXXX xer: 0x20000000 lr: 0x200ba520 ctr: 0x94e86720
    r00: 0x00000004 r01: 0xbfff8900 r02: 0x2067a448 r03: 0x220dda00
    r04: 0x00000000 r05: 0x00000001 r06: 0xfefefeff r07: 0x80808080
    r08: 0x00450050 r09: 0x220dda0c r10: 0x00000000 r11: 0x80008000
    r12: 0x80808080 r13: 0x00000000 r14: 0x00000000 r15: 0x00000000
    r16: 0x1fb04d70 r17: 0x03cc4c00 r18: 0x00000000 r19: 0x203840c4
    r20: 0x20383c30 r21: 0x20383cf0 r22: 0x2037f580 r23: 0x1fb08610
    r24: 0x2025f40c r25: 0x206192a8 r26: 0x1fb04e10 r27: 0x00000000
    r28: 0x00000005 r29: 0x1fb0884c r30: 0x00000000 r31: 0x200ba448
    Thread 5: (0xb0220d68, 0xb8152b34)
    0x1b6fde34: /System/Library/PrivateFrameworks/OpenTransport.framework/Versions/A/OpenTransp ort : BSDwatchevent + 44
    0x1b702fb8: /System/Library/PrivateFrameworks/OpenTransport.framework/Versions/A/OpenTransp ort : _CarbonSelectThreadFunc + 204
    0x94edc1d4: /usr/lib/libSystem.B.dylib : _pthreadbody + 40
    0x00000000: /Applications/Adobe Photoshop Elements 4.0/Photoshop Elements 4.0.app/Contents/MacOS/Photoshop Elements 4.0 : + 0
    PPC Thread State
    srr0: 0x00000000 srr1: 0x00000000 vrsave: 0x00000000
    cr: 0xXXXXXXXX xer: 0x00000000 lr: 0x1b6fdea0 ctr: 0x94ea0760
    r00: 0x00000000 r01: 0xf0203d60 r02: 0x1b71b010 r03: 0x000000e8
    r04: 0xf0203e34 r05: 0x00000000 r06: 0x00000000 r07: 0x01000000
    r08: 0x00000000 r09: 0x01000000 r10: 0x00000000 r11: 0x1b71b42c
    r12: 0x94ea0760 r13: 0x1b71b010 r14: 0x00000000 r15: 0x1b71b010
    r16: 0x1b71b008 r17: 0xf0203e18 r18: 0x1b722efc r19: 0xf0203e0c
    r20: 0xf0203dfc r21: 0xf0203e08 r22: 0xf0203e34 r23: 0x00000000
    r24: 0x1b722efc r25: 0x1b71b010 r26: 0x00000000 r27: 0xf0203e04
    r28: 0xf0203e34 r29: 0x00000000 r30: 0x1b71b010 r31: 0x1b702efc

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