PS7- close (x) button greying out, and PS locking up

When I launch photoshop 7 and try to create a new file, the close (X) button greys out, and all the menu options grey out. I have to pull up the task manager and close photoshop. If I close it and open it again, I am able to open an existing file, but if I try to create a new file, the same thing will happen where it just locks up. I tried unisntalling/ reinstalling. It will work normal for a while, then go back to this. I am using windows XP. Anyone else have this probelm? Any suggestions?

Try resetting your preferences per the procedure in the FAQ's. Reinstalling doesn't reset them.