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Update to most recent AE CS3 8.0.2.
I already did that. It's 8.0.2 that isn't working.
I've scrapped leopard and am going back to 10.4.11 (I had other problems with it as well).
Leopard works great with AE CS3 8.0.2. Have you tried repairing permissions?
I have AE 8.0.2 on Leopard 10.5.2 running on an old G4 Powerbook with no problem.
Try Jonas Hummelstrand's troubleshooting tips:
Yes, my powerbook is also trouble-free.
But it's just too slow to run AE on.
And yes, yes, I did repair permissions. I did everything including a "safe" starup, repair permissions many many times, etc. etc. etc.
I'm beginning to think the problem with AE was with non-ae plugins. But then why did automator and software update cease to work?????