So you dragged and dropped both photoshop 7 and CS Applications from the Application folder to your External Hard-drive. Correct? If the EH was turned on and mounted on desktop the Apps. should have open. If you moved any other files from, say, Utilities, system, or Preference folders. Thing won't work. When you installed the Apps. Did you first uninstalled all related files from desktop HD. First you need to do a search for all keywords such us Adobe, photoshop using finder and deleting them till no more files remain( do not remove Adobe reader and such). Then, you can have a clean installaion. Good luck.