Why can't I place .psd files in Illustrator?

I will do my best to outline the situation. I am not very tech savvy and need some advice. Recently my motherboard crashed on my previous computer. I currently work for a nonprofit and but do quite a bit of graphic design. We have a tight deadline on a number of items, so my boss went and bought me a computer a soon as possible. She bought the best pc she could find. Since I am a mac person I do not have much understanding about pc(s). I reinstalled CS3 on the computer. I am currently working on 16 separate signs that are 36"x36". I did not have any issues working with placed images on my home computer or my previous computer. All the .psd images are not showing up and say the link needs to be repaired or replaced. I do that and the same window comes up again saying the image needs to be repaired or replaced. When I try to start over and place them in a new document, absolutely nothing happens. However, when I change the images to .jpg I can place them. Also, when I try to print these rather large signs with the placed .jpg, I get this: Not enough memory. The object was to complex. Reducing the size of this document window may help. Here is the specs of my system:
Can anyone help?? It is frustrating to get a new computer that does not really work. I will answer questions if that will help pinpoint the problem.

You are using a 64-bit Windows operating system, and this is a well-known issue.
First, make sure you've updated to version 13.0.2:
http://www.adobe.com/support/downloads/product.jsp?product=27&platform=Windows
Do a search here with keyphrase 'place psd.'
Here is one thread to get you started: http://forums.adobe.com/message/1270511#1270511

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Why can't I place .psd files in Illustrator?

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