Image Processor Fails in CS4 -basic script

I tried to run a basic script through Image Processor (Never had this problem in CS3) The script was very basic: Open all files in a selected folder (all recent PSD files) Save files as LZW tif in another selected folder. Run a single action: "Flatten Image"

Each time the entire process fails with the following Prompt: "Sorry, I could not process the following files" (all the files in the selected folder)

Suggest to check the files you used. If the files contain duotone or multichannel mode, then the message "Sorry, I could not process the following files" will appear.