VERY slow CS3 psd import

I've just done a test that makes me despair. I imported a PSD file with spot channels into Illustrator CS3. It's a 90MB file, it took 1 minute, and had a dialog up most of the time saying "generating pixels". I then did the same test on my other mac running CS2. Result - 4 Secs.
WTF is going on?

Hi all
Happy New Year.
Did anyone manage to determine the cause of the problem because we've had this issue on and off with MacPro and PowerMac machines using CS3. Some have lots of RAM and still have the problem. Takes 5 minutes+ to load the file.
What does 'generating pixels' actually mean? Google drew a blank.
Cheers
Craig

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