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Try this..go to this location and delete these 2 preference files.."C:\Documents and Settings\<user name>\Application Data\Adobe\Photoshop Album\3.0\psa.prf" and "C:\Documents and Settings\<user name>\Application Data\Adobe\Photoshop Album\3.0\apd.prf". Then relaunch it.. I hope it'll work then!
I deleted the 2 files and rebooted, but I still get the same error. The files were not re-created.
Hey.. then may be you could go and 'repair' from the installer in 'Add remove programs' in the control panel.
I have the same problems as Simon Smith.
Could not find the files Diksha suggested should be deleted.
Removing the program and re install it does not help.
Any more ideas?