Photoshop Elements won't create a file, edit a file or save a file...

Hello all,
I just bought an Epson 600 scanner which came with a copy of Photoshop Elements (v7, but that's another question for another day).  Was working fine for awhile (a few weeks) but now I'm unable to edit any files.  This is on an Intel Mac Pro running Windows 7 (natively, not in VMWare) with 8 cores and 8 GB of RAM and terabytes of free disk space.
Here's a sample sequence of events:
1) Launch PE
     - Get selection screen for organize, Edit, Create, Share.
2) Select Edit
     - Launches editing workspace normally
3) Click File->Open
     - Get the file browser window with thumbnails (standard windows stuff)
4) Click a TIF file (or a JPG file) and click Open
     - File browser window closes and I'm taken back to the editing view but there's no picture.  No sign that it did anything (all the menus that are greyed out when the editing screen is empty are still grey etc - including the File Save menu option)
5) Try to drag a file into the editing workbench from windows explorer (either a TIF file or a JPG)
     - Same behavior - switches back to the workbench, but everything is still greyed out and the file isn't there.
6) Try to create a new file
7) Click File->New
     - New file dialog pops up asking me to name and size it
8) Give it a random name and leave it at the default 6x4x300dpi and click OK
     - New file dialog goes away and returns me to the editing canvas, but it's still blank and all the menus remain greyed out
I get the exact same behavior if I try "Open As" or "Open recently edited files" etc
I AM running Symantec anti-virus and I've noticed some people mentioning that that can cause issues for Adobe, but turning it off really isn't an option.  So if there's some rule I need to set up to allow some background process to talk, that's fine but I can't just disable it to use PE.
Is there any debugging log kept somewhere?  (I suppose I could check this site more thoroughly for that info)
Any help or suggestions would be most welcome!
Thanks,
Jason

Try resetting the PSE preferences by
   1. Close Elements.
   2. Launch the Photoshop Elements Welcome Screen and hold down ctrl + alt + shift as you click Edit.
   3. Continue to hold the keys until you see a message box asking if you want to delete Photoshop Elements settings file; click Yes. Elements will open with default preferences.
try and let me know your comments.
-Garry

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