Blozan1 read below:
Most likely the problem with Photoshop 7 and 10.4.6. I didn't copy and paste the entire article, but rather the relevant parts. This is a cause of Photoshop 7 crashing (as well as CS and CS 2) but several people also reported similar issues to yours.
http://www.helios.de/support/ti.phtml?099
Also, read below from Group Logic:
Group Logic has determined the cause of the Photoshop crash that occurs
when saving file to an AFP server from a Mac OS X 10.4.6 client.
Photoshop appears to be using an older Carbon call that creates and
retrieves Mac OS 9 comments instead of the Mac OS X comments stored in
the .DS_Store file. Mac OS X 10.4.6 changes how those older comments are
handled which triggers a crash in Photoshop.
Details:
The following is a summary of the actions which cause Photoshop to
crash:
Copy a Photoshop file with no comments to the server
Open it in Photoshop
Save it in Photoshop
Photoshop will request the OS 9 comments from the server
Server returns "no comments" because they don't exist
Photoshop writes comments to the server, usually over 128 or 200
characters (depends on what file format is used)
Resave the file in Photoshop
Photoshop will request the OS 9 comments from the server
Mac OS X Server returns "no comments" whereas ExtremeZ-IP, SFM, Helios
and Mac OS 9 return the actual comments
Save completes to the Mac OS X Server or crashes on all other AFP
Servers.
The AFP 3.1 specification supports comments of up to 199 characters. In
addition we found that AFP 2.2 in Mac OS 9 personal file sharing allows
comments of up to 199 characters. However servers running Mac OS X 10.3
and 10.4 do not permit comments over 128 characters (this may be true in
earlier versions of Mac OS X, but we did not test them).
These are the facts we were able to determine via packet traces and
standard testing:
1. If a client wants tries to add an OS 9 comment that is greater than
128 characters to a file on a Mac OS X 10.4 AFP server, the server will
return success but not modify the existing comment. The server simply
ignores the request.
2. Photoshop will not crash if an AFP server returns OS 9 comments
that are less than 128 characters
From this evidence we have come to the conclusion that Photoshop
incorrectly assumes that OS 9 comments cannot be larger than 128
characters. Since the 10.4.6 upgrade it appears that the OS X client
will correctly return to Photoshop the entire 199 characters of the Mac
OS 9 comment. Since ExtremeZ-IP and most other AFP servers conform to
the AFP spec they do send the full 199 characters allowed. Upon
receiving the comment from the AFP server, the Mac OS X 10.4.6 AFP
client will pass the comment to the Carbon File Manager, and it in turn
to Photoshop which will then crash.
This is not seen when saving to the XServe, because it never creates
comments if they exceed 128 characters. Therefore the change to the AFP
client in Mac OS X 10.4.6 would not affect Photoshop when saving to an
Xserve.
Apparently there are issues with 10.4.6 and Photoshop!
Sorry MAC JACK!