Installing Lion stops Textedit and Preview launching

Having upgraded to Lion I cannot launch Textedit or Preview properly on my Mac Pro.

I wonder does anyone else have the problem.

Indicators:

1. I am logged in as myself as administrator
2. Both Textedit and Preview crash consistently on every file, and also if you simply open either application.
3. OS is production 10.4. All Software Updates to date are installed.
4. My Macbook Pro is also upgraded. This works OK. So do other Macs on the network.
5. Guest account on the Mac Pro works OK i.e both programs launch properly.
6. If I create a new account on the Mac Pro (admin or otherwise) all works OK
7. So the problem is only on my account on Mac Pro
8. Other postings point to possible problem with symlinks(?). There don't appear to be any symlinks in my home directory. I have never used Terminal, and do not knowingly poke into system files, permissions etc. I have attempted though to follow advice from these postings but no success.
9. There is also some comment about Downloads folder. I have deleted all contents from this folder with no success.
10. I have run Repair Disk Permissions in Disk Utility with no success.
11. The error message below indicates a permissions problem in Library/Containers/. I cannot find a folder called Containers. (I have looked into Library pressing the Option key and Go in Finder.)

Below is part of the error message whenlaunching Textedit.

Process: TextEdit [2524]

Path: /Applications/TextEdit.app/Contents/MacOS/TextEdit

Identifier: com.apple.TextEdit

Version: 1.7 (288)

Build Info: TextEdit-288000000000000~1

Code Type: X86-64 (Native)

Parent Process: launchd [184]

Date/Time: 2011-08-0114:32:28.049 +0100

OS Version: Mac OS X 10.7(11A511)

Report Version: 9

Interval Since Last Report: 185820 sec

Crashes Since Last Report: 23

Per-App Crashes Since Last Report: 14

Anonymous UUID: 47484EA8-C070-47AA-AFE0-5945EE600D97

Crashed Thread: 0 Dispatch queue:com.apple.main-thread

Exception Type: EXC_BAD_INSTRUCTION(SIGILL)

Exception Codes: 0x0000000000000001,0x0000000000000000

Application Specific Information:

dyld: launch, running initializers

/usr/lib/libSystem.B.dylib

xpchelper reply message validation:sandbox creation failed: 1002

Container object initializationfailed: NSCocoaErrorDomain:513 You don’t have permission to savethe file “Containers” in the folder “Library”.

Dest:~/Library/Containers/com.apple.TextEdit/Data/Library/Preferences

Destination permissions info:

0 stat: 2

-1 stat: 2

-2 stat: 2

-3 stat: 2

-4 stat: 2

-5 m:040375 O acl:(null) LIBRARY

fs: hfs, fsid: e000009, mf:0480d000

-6 m:040775 U acl:(null) HOME

fs: hfs, fsid: e000009, mf:0480d000

-7 m:040755 R acl:(null)

fs: hfs, fsid: e000009, mf:0480d000

Application Specific Signatures:

sandbox creation failed: 1002

The equivalent message for Preview is similar:

xpchelper reply message validation:sandbox creation failed: 1002

Container object initializationfailed: NSCocoaErrorDomain:513 You don’t have permission to savethe file “Containers” in the folder “Library”.

Dest:~/Library/Containers/com.apple.Preview/Data/Library/Preferences

Advice gratefullyreceived.