Whenever I open/edit any file in CS3 and try to Save/Save As, the explorer window just flashes then disappears. The program status is "Running" however am not able to get any response from the application except to kill the process. When I logon to the same pc with a different Windows account, all works okay. Please help.

Have you tried saving to a different folder? Perhaps the account doesn't have permission to save there? That'd be my only guess other than a corrupted profile file.