I saw other discussions regarding this but couldn't find an answer that worked for me.
I already tried creating a new user and renaming my preferences - neither worked.
Here's the error message I get:
I have CS5 InDesign and Mountain Lion OSX...problem seemed to start when I upgraded to Mountain Lion
Unfortunately InDesign does not reliably survive an OS upgrade. Please uninstall and reinstall InDesign.
Note, also, that you should take the maintenance update to 22.214.171.1243. The version you have installed, 7.0.0, is quite buggy.