PS7 crashing, memory, hard drive, preferences... Aaargh!
Okay, Preferences... Ram allocated to photoshop defaults to 50% IIRC, set it to 70-75%, no more, or you will starve your OS.
I don't know what PS Icon you are referring to unless it's the result of the file association, in which case it begs the question, "what makes you think that's it?".
Finally, in XP, I have seen others recommend that you turn Thumbnails off for the folders. I can't comment on it more than that since I run Win98SE.
Here's something that may help recover, but not prevent, preferences. Once you have things the way that you like them, find the Photoshop Preferences.PSP file (in the Windows\application data\adobe... folder) and copy that to a safe place on your hard drive. You may have to set explorer to view hidden and system files in order to find it. See this KB Article for the location:
<http://www.adobe.com/support/techdocs/6712.htm>
Anytime you have to reset preferences you can copy this PSP file back to it's original location and have all of your preferences back.
Peace,
Tony
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