Opening JPG produces droplet damaged error?!?

Upon opening certain types of JPG (for example) is giving me the following dialog in PS CS2 (and CS3 beta): -

"Could not complete your request because the droplet file is damaged or was created with a previous version of photoshop"

This is when opened by double clicking, open from the menu and by dragging the file onto the dock icon.

What gives here? During a particularly intense Christmas period, I'm unable to use PS to edit a JPG?!?!? A nightmare...

Using a brand new MBP CD2 17" - It was working fine until the end of last week.

Any help here would be most, most appricated...

Can you open teh JPEG in Photoshop?

What version of PS was used to create the droplet?

Have you tried resaving the droplet (you did save the action for it, right?)

No, the only workaround I have found is to open the JPG first in IR, then use the 'edit in photoshop'.

There is no droplet - However, the JPG was created in PS CS2.

Have you tried resetting the Photoshop preferences?

Does PS manage to open JPEG files when logged in as another user?