I found a lot of discussion on this error in Photoshop but I'm getting it in After Effects. I have a sequence of JPG images created by photoshop (output is RGB in sRGB color space) and it appears one of them is causing problems in AE. There are several hundred images in the sequence, all created from PS, and only this one is causing problems. I've re-created it several times in PS and the error persists. I've also re-created several others and they're still fine.
I've seen other comments that the issue is with incorrect file formats and CMYK color space. I've confirmed that neither of those is my problem - the file is JPG straight out of PS in RGB. Also, there are several hundred others that are just fine using the same process and "save as" properties...
Have you stripped its metadata in Bridge? Could well be that it contains botched info from the camera. PS carries this through until the bitter end. Alternatively save it with Save for Web choosing to remove metadata.
Thanks for the tip - I got it to work by re-running the PS macro for several images around the problem image.