Why am I having performance Issues with an upgrade from CS2 to CS5.5?

I am struggling hard with an upgrade from InDesign CS2 to CS5.5 (part of CS5.5 Design Standard)
There is a very slow response when trying to produce a 45 page document which needs many .jpeg images inserting, sometimes up to six on each 3-column page. While InDesign behaves sort of normally on text only pages, it slows to a virtual standstill when on the pages with images. (But this is what its for and I didn't have this problem with CS2!!)
Having read through some of the postings on this topic I have followed all the advice without success :-( 
1) disable LSD in Preferences – Interface
2) disable thumbnail display in Pages
3) adjust view settings to Typical with Raster and Vector Images greyed out
4) disable Save Preview Images with Documents
5) check Links before opening documents
7) switch Preflight off
I shouldn't need to do all this should I???
I am operating with the following:
Packard Bell ixtreme M5740 64 bit
Intel Core i5 CPU [email protected]
4.0 GB RAM
ATII Radeon HD5570 graphics card 2779 MB available memory, 1024MB dedicated
plenty of free space – 274GB on c: drive and 296 GB on a D: drive
My hardware conforms to/exceeds the Indesign recommended hardware spec. Oh yes I am working on my local drive and  I don't have these problems with Photoshop or Illustrator CS5.5.
Has anyone an idea about what's going on?
I've lost a good 6-8 hours so far trying to sort it out. Any help and observations will be gratefully received!

Hi Peter
Thanks - I've found that the files were marked as 'hidden' and thus by switching them on gain I was able to recreate the original location.  Regrettably this has had absolutely no effect on my problem. :-( 
I have now created a  fresh document, studiously linking all my images properly  (similar number to a DK 'Eyewitness Travel Guide') and by the time I got halfway through its 80 pages, InDesign had slowed to a crawl - ie 15-20 seconds to respond to any command.  It is clearly doing something that it thinks necessary despite all the 'workarounds' people have suggested. Please please Adobe what's going on???

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