|If you haven't done so already, install the Photoshop 7 update which updates it to Photoshop 7.0.1. Get it here: http://www.adobe.com/support/downlo...|
Please note that the update is free but it won't install unless your copy of Photoshop 7 is genuine and legal.
I might also add that you should have Windows XP Service Pack 3 (SP3) installed to ensure that your Windows XP is up to date. If you don't have SP3 installed you can get it via Windows Update.
To install SP3 you must have SP2 already installed.