Please help... "Could not initialize Photoshop becauae the scratch disks are full.

I am using Photoshop 7 on Windows Vista. I just bought a new computer and installed Photoshop (which worked fine on my old computer running XP). It installs correctly but wen I launch it I get the error "Could not initialize Photoshop because the scratch disks are full." Then Photoshop immedietly shuts down.
My C drive has 1.3 TB free, my D drive has 145 GB free and my E drive has 5 GB free. I've tried defragmenting all the drives and deleting any temp files.
I do not know why this is happening and would greatly appreciate any advice.
Thank you,
Brad

there's a bug in 7 that causes this on drives with more than 1 TB free. upgrade photoshop to fix it or temporarily fill the drive with garbage or partition it so the free space is less than 1TB.
a side note is that current upgrade policy only gives special pricing to 3 versions back. right now that's version 7. if you wait until cs4 comes out you'll be 4 versions back and will be out of the upgrade path. then if you want a higher version in the future you'll have to purchase a full license again. if planning on upgrading photoshop - ever - suggest you do it before cs4 ships.

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