Find the InDesign Recovery folder (now hidden in Lion and later -- Access hidden user library files | Mac OS 10.7 Lion) and empty it so ID isn't trying to recover from bad data and going into a crash loop.
If the file still crashe when you try to open it from the File menu, post the crash report on Pastebin.com, not here, and give us a link to it, or try to interpret it yourself: Guide to Interpreting InDesign Crash Reports | InDesignSecrets
Sorry, overlooked that you'd already emptied the recovery folder.
Looks to me, as a non-expert, like it could be a bad image or image frame, but I don't know how to test that without being able to open the file.
I suspect it won't open as a copy, either? No old verison available from Time Machine?
What's the cost to rebuild from scratch? If it's high enough, Markzware's recovery service might be a good option: Bad InDesign or Quark File Recovery Submission Form
I am pretty sure it's a image thing as it happened at the point of adding PS eps' to it. As a copy doesn't work, and no time machine. File was on a server, and between backups (no time machine!). We have rebuild it, but its very frustrating. Thanks for responding in any case.