If all the images were pasted there would be no links.
What is the exact error message that you are getting? Are you sure this is actually a .idml file and not a .indd file that somebody changed the extension on? Is your copy of CS5 patched to 7.0.4?
I'm guessing it might have been a network corruption problem. She brought in her laptop, we made another .idml file and loaded it to a USB stick, then transferred it to my computer. The file opened just fine. And yes, she had pasted all her images, so we have her collecting the bits and pieces for me to review and relink everything. I believe I have the patch, but will double-check. Thanks!