Unable to continue - hardware or system error

I was using photoshop Elements 2.0 earlier today and then when I tried to get back in it this afternoon this message came up and wouldn't let me in: Unable to continue because of hardware or system errror. Sorry but this error is unrecoverable. In looking at customor support it said that if you use Windows XP and installed it over a prior version of windows this could cause the problem. I don't use Windows xp, I have 2000. I have uninstalled the photoshop program and reinstalled it to no avail. Anybody have any ideas to get me up and running??? Thanks so much. Bobbi

I suppose you have tried the "Restore preferences" thing? (press and hold down Alt+Control+Shift immediatly after launching Elements. Click Yes to delete the Elements settings file)

or delete the prefs folder manualy:

C:\Documents and Settings\%username%\Application Data\Adobe\Photoshop\Elements\Adobe Photoshop Elements Prefs\

Micke