your monitor profile is either 1) defective, 2) inaccurate, or 3) you are applying the wrong Source Profile
try using PDI_Target_WhackedRGB.jpg reference image (use the embedded profile when you open it, do not Convert or alter it)
posting a screenshot of your COMPLETE document window AND Document profile (like this)
will also be useful for you to post if still having problems...
the Document profile WhackedRGB.icc (bottom lower left) tells me Photoshop is using the embedded profile (and Converting it to your Monitor RGB)
because it is displaying with heavy yellow bias — that tells me your monitor profile is most likely bad (see my previous link "1) defective, 2) inaccurate")
want a second opinion?
open a RGB file in Photoshop
File> Select All
Image> Adjustments> Desaturate
my guess is your newly desaturated image isn't neutral gray at all -- is it the same nasty yellow bias?
the fix is to run a calibration routine to build a new monitor profile...
"color managment off" setting on RGB working space is using the "MONITOR RGB - NEC MultiSync LCD 1550V @ 6500K" which is the one that displays things fine.
I think photoshop loaded it by it self.
To me the color profile that displays things very yellowish is "sRGB IEC61966-2.1" which is the one assigned to most of my psds although some have Untagged RGB those display fine, I dont know why the color profile from the wackedrgb makes it seem yellowish as well maybe my monitor is special?
How can it be converting it when I select to use the embedded profile instead? by the way the image appeared gray not yellowish.
if I convert Wacked RGB's color profile to sRGB IEC61966-2.1, MONITOR RGB - NEC MultiSync LCD 1550V @ 6500K, or use the embbeded color the result is the same yellowish look.
Only color profile that works is Untagged RGB which I get by copying and pasting it on a new document, which setting named "Color Managment Off" working space "RGB" has a direct effect on how it looks.
You said my monitor's profile is bad are you sure? how can I run calibration routine?
Source Profile> Monitor Profile
photoshop always reads (or applies) a source profile and Converts it to to the monitor profile for a theoretical 'true color' display (you cannot circumvent this behavior)
your theories are pretty mixed up (sorry) you need to understand the basics how photoshop uses profiles
based on your screenshot (my previous comments) it is pretty obvious your monitor profile is bad (that is what you need to first rule out)
try reading the Adobe Help (or google) for how to calibrate my monitor for photoshop (add Windows or OSX to your searches)
BTW, if desaturated RGB in photoshop isn't 100% neutral with no color tints, that is a dead giveaway your monitor profile is bad, but you didn't answer my earlier question
Hate to say it, but gator soup is right - you really need to throw out all you think you know about color-managment and go with an open mind into learning how it's supposed to work. There's really only one way to get this stuff right, and that's to understand how it works. There are no quick fixes.
For now, until you determine whether you want to use a calibrator/profiler, you can temporarily work around your problem by associating the standard sRGB color profile with your monitor:
1. Click Start and type Color Management into the search box. Click Color Management when it comes up.
2. In the Devices tab, ensure your monitor is the one selected in the Device: field.
3. Check the box that says [ ] Use my settings for this device.
4. If the sRGB IEC61966-2.1 profile is shown, click it to highlight it. If it's not shown, click the Add button and add it
5. Set the sRGB IEC61966-2.1 profile as the as the Default Profile for your monitor.
Now you should see the yellow color problems when working on images in Photoshop go away.
in my opinion
setting sRGB IEC61966-2.1 profile as the Default monitor profile is fine for instantly rulling out a bad monitor profile on sRGB-compliant monitors (as likely will do in this scenario)
BUT setting sRGB IEC61966-2.1 as the Default monitor profile should never be used by anyone who wants to use Photoshop as a color-correct reference monitor because it literally breaks Photoshop's (all color-managed apps) ability to 'accurately' display color (Source Profile-to-Monitor Profile)
in other words, for optimal color 'accuracy'
one's Default monitor profile should be a recently-calibrated (hardware-profiled) custom monitor profile — NOT a manufacturer's canned sRGB or AdobeRGB profile, or even the canned OEM factory profile for the monitor
What I told you has nothing to do with Photoshop, but is entirely managed by the operating system (and yes, I described the process for Windows 7).
I'm thinking the color-management settings must be somewhere in the Display properties, but it's been so long since I used XP regularly that I can't really advise you expertly. But rest assured the settings you want are in the operating system, not Photoshop. Windows is responsible for managing the profile - monitor association.
You've made progress - congratulations!
That image SHOULD look normal in Photoshop - that's proof that your color-management is working.
Now choose View - Proof Setup - Monitor RGB to see how the image looks without color-management if you want more proof. To turn it on again, uncheck View - Proof.