You have a hardware problem.
PS is VERY demanding on your System Resources. If it is crashing, it could be as simple as a bad video card driver, or not enough RAM. Hard to say troubleshooting blind, but it IS a hardware conflict, no doubt.
You can try this solution from the Adobe forums, which might help...or not...
I had the same problem as you. One day it just stopped loading. I just spent a couple hours tracking down a solution to this and finally got it working. This is what worked for me.
Go into C:\Documents and Settings\<USERNAME>\Application Data\Adobe\Photoshop\<VERSION>\Adobe Photoshop <VERSION> Settings.
Locate the file Adobe Photoshop 7.0 Prefs.psp. Rename it to something like Adobe Photoshop 7.0 Prefs_old.psp just in case this doesn't work for you so you can revert to the original.
Now minimize the window and fire up photoshop. It will recreate your pref file and should work. If this does work for you shutdown photoshop and reopen the C:\Documents and Settings\<USERNAME>\Application Data\Adobe\Photoshop\<VERSION>\Adobe Photoshop <VERSION> Settings file.
Delete the renamed Adobe Photoshop 7.0 Prefs.psp and you are all set. There will be a new Adobe Photoshop 7.0 Prefs.psp file created by photoshop.
If it doesn't work for you just go back and rename the modified Adobe Photoshop 7.0 Prefs.psp back to the original name (Adobe Photoshop 7.0 Prefs.psp) and you will be back to where you were before you tried this.
I hope this solves your problem it worked great for me. Have a great day.
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