System Crashes in Photoshop 7

If the problem started after installing the proc, I'd be suspicious of that. Remove the new one and reinstall the old and see if it still happens. If no, then you may have a proc issue. Consider the memory you are using. Make sure the clock speed of your memory matches that of your proc's front-side bus. I've noted a few of AMD's newer chips to be a little temperamental with memory. AMD is my choice of procs but I do know some of their shortcomings.

One other thing you might want to check is W2K compatibility with your proc. http://www.microsoft.com/windows2000/server/howtobuy/upgrading/compat/default.asp

If you can check your CPU temp, monitor that as well and make sure the fan is operating properly. If you can install another case fan, consider that too. Heat may be at issue here.

Hope this helps! :)

I have heard of some serious problems using Photoshop 7.0 on Win2k or XP. Systems crash and lock-up.
I would be very suspisious of the application on this OS. MS is supposed to have a fix in the next service pack.
Have you checked in the MS knowledgebase for related issues and fixes?

Be absolutely certain to uninstall any previous version of Adobe PhotoShop whatever before installing version 7. This will cause PS to lock and crash.
Also, I discovered I had a mismatched memory DDR memory chip when everytime I tried to save a doc in PS it would tell me my P4 2.8 1gbram 120gb ASUS P4B533 did not have the resources to perform that action, especially because of NAV Corp ver.7.5 was running - Huh? Put in new, compatable chip and PS worked perfectly. Make sure your BIOS ram settings are not overclocked.