It's most likely corrupted, damaged perhaps irreparably. A lot can happen to a hard drive, CD or DVD in ten years, and thus to a file.
Can you open it with any other application, such as Illustrator, Preview, Paint, etc.? You may get lucky and be able to open the flattened composite or the embedded JPEG thumbnail preview.
If there are no privacy concerns, you could upload the file to your favorite FTP service, or to Dropbox or your favorite free server, such as yousendit.com, and send the link to one of us who can try opening it for you.
That way you can know for sure whether the file is toast.
That's why backups are so important…
Here's a thought. Does the file gave a suffix (ie .psd)? Change it to .tif and see if it opens then. Give .jpg a try too. Sometimes you get that warning when you've saved the file with the wrong extension
It tried to open as jpg but couldn't