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Cant get PS 7 to run

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This has been happening since about a couple of days ago. When I start up photoshop I get an error that says "Could not initialize photoshop because theres not enough memory (RAM)" I press OK and PS exits.

I have 384MB of memory. I've used photoshop for a couple of years with this amount of ram and I never I had any problems. I thought maybe it was spyware but after running scans and cleaning it out it didn't help. I also tried memstat xp to free up some ram.

My PC is not having any slow downs with any other programs. I can play Americas Army and other games with no problems and such. Anybody have any solutions??

One more thing, I also notice that when I look at the running processes in the task manager, they are using up a lot of memory (all more than 1,000k). Is this normal? I know most of those processes dont use that much.
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Make sure all other applications are closed before launching PS. I've used it fine with 256MB RAM on XP Pro, though I've since added another 256 stick. The memory used by running processes is normal. Mine shows only four using less than 1000kb out of the thirty that are running.
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