Your default photoshop settings may be corrupted. Try this: find the folder below (it may be hidden).
C:\Documents and Settings\[your user name]\Application Data\Adobe\Photoshop\7.0\Adobe Photoshop 7.0 Settings
Delete everything in there and reinstall photoshop. You MUST delete it before reinstalling, since just uninstalling photoshop will not get rid of those files.
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