Yes, another user can login and launch Photoshop without a problem. When the 'problem' user logs into another computer, than he gets the same problems launching Photoshop. So, I know it is tied to the network user. What I am unsure of is how do I reset the user rights/priviledges? From a hardware standpoint, I can run disc utility and repair permissions etc. but do not know how to troubleshoot problems associated with one particular user.
Okay, I found a solution. Since it was just tied to the one network user, I knew it had to be one of the "support" files created in the User's ~/Library Folder. So, I did a little trial and error (after confirming it was indeed just Photoshop and none of the other CS4 suite apps.
Anyway, I deleted the ~/Library/Preferences/Adobe Photoshop CS4 Settings Folder. Then, when launching Photoshop this gets re-created.
So, all is well!