Adobe’s new CS3 (Photoshop and Illustrator mostly) experiences slow performance and lagging when opening or creating files regardless of size or type.
Check your printers. this error is related to the default printer and print service. If you have an offline or unconnected printer, this is most likely your issue.
Remove any offline or old/duplicate references to networked printers. If the printer is timing out, you will experience lag in Photoshop and Illustrator even on fast systems.
My Personal Experience: After installing the Adobe Photoshop CS3 Trial and using it for a little bit, I noticed it bogging very badly whenever I would create a new image or open an existing file of any type or size.
After searching around for a while, I caught wind of it being printer related, more specifically the printspooler service in windows. I had recently moved and not hooked up one of my networked printers.
After removing the offline printers (and printer that was trying to connect but would time-out) Photoshop opened files and created new ones with a snap!!
I’m very glad to have resolved this issue, it was getting very annoying having Photoshop lag on a Dual Core system running 4gb of DDR2 on a Rapter! Anyways, glad to have it cleared up! For anyone out there having this same issue, check your default printer and also remove any offline printers or ones that cannot connect!
Note: If you decide to repost this solution on your site, please reference my post above by linking to me somewhere on your page. Thanks!!! Hope this information helps!
UPDATE: If you missed this one, the ability to view PSD files in Windows Explorer is always nice!