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Welcome to the board Scots Ian

It's always important to have enough memory of course, but without it you would also experience a lot more problems.

I have experienced the same crashes while using the liquify tool. Most of these crashes are related to your graphics driver. Chris Cox, one of Adobe's Photoshop developers, is always mentioning in the Photoshop forums that most of these problems are video related and that you should always install  the latest drivers. I updated my driver and by doing that all of my liquify problems were history. I have read however that some people still seem to have crashes while using the lighting effects filter.  Even I experienced crashes with this filter in the past, despite updating my video driver. Updating your driver is not going to harm your computer and will probably solve most of  your problems. Make sure that you have the latest directX version and enough RAM. If you still experience crashes after this, please come back and I can look even deeper in my bag of tips & tricks

Good luck