Photoshop CS3 Freeze/Hangs/Crashes

Yesterday photoshop cs3 was working fine for many hours and this was after a clean format and reinstall of xp.. as this problem had occured beforehand. Today I run it, open a psd file and then it crashes pretty soon after.. I just have to switch to another program and come back to photoshop and it just won't respond, screen goes all white, and have to force photoshop to quit using the task manager.

So what is going on with this new version its just not very relaible at all from what i'm seeing.

xpsp2
amd x2 4800
2gb
dual monitor
nvidia 8800 162.50
epson rx500

I have the same problem. I thought it might be new networking software that I installed (Network Magic) but after removing that and cleaning all files and defragging I still can't keep Photoshop CS3 running.