More info? OS version, Hardware, RAM, CS6 version, Plugins?
It is actually InDesign CS5 version 7.0.4, running on Mac OSX 10.8.4. Macbook Pro 2.6 Ghz with 2 GB RAM and 160 GM memory.
2 GB RAM
That's not enough RAM for Mountain Lion and ID, so ID is forced to go looking for open disk space. I think you'll need at least 8gb RAM.
2gb is Mountain Lion's minimum req.
Excellent point. Thanks Rob.
On top of that I'm not sure CS5 is even supported under Mountain Lion.
And I'm going to go one step further and guess that Mountain Lion was an
upgrade install, not a clean install or a new computer.