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Thank you to all the forum members that helped me.

The solution to my problem was the re-installation of CS to a new folder.

During the re-installation CS will ask where to install it.

Your answer should  be: C:\Progra~2\Adobe

If you install in the suggested folder,C:/Program /file(x86)/Adobe, it will not run properly. This was my case.

Notice that the new folder name does not have the "m" and the slashes are back slashes "\"

Before you re-install CS, please uninstall previous install.

So, despite that Adobe saying that Photoshop 7, Photoshop 8 (CS) will not run on Windows 7, 64-bit, IT DOES run.

Mod edit: Removed specific product endorsement, using windows 'uninstall' will work just fine.