C O R R E C T I O N ! ! TO THE ABOVE PATH:
C:\Documents and Settings\"%user name%"\Application Data\Adobe\Photoshop\7.0\Adobe Photoshop 7.0 Settings\
I had the same problem in Windows 2000 I renamed a file named "Adobe Photoshop 7.0 Prefs.psp" located in "c:\Documents and Settings\%user name%\Application Data\Adobe\Photoshop\7.0\" with a new file extension so photoshop did not recognize the file when it loaded and it asked...
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