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It usually means that some of the vital information in the image file header is damaged and unreadable. On occasion the damage is severe enough to make it impossible for Photoshop to display the image. Although the data in headers vary, it is not unusual for it to contain such as specific attributes as image format and color profile. Google "Information in an image file header" for header information relating to jpeg files, for example.
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Oh boy. I have a damaged psd file and am using my CS5 version. Never a problem. Computer glitched. Now it says 'not a valid photoshop file'. I tried changing the extension to various other types. Nope. Several PSD fix programs not working, online or otherwise. One said 'no data'. The file is 41 megs. I can even get by with just SEEING the image so I can get the text I redid. Thanks folks...
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File corruption is caused by failing/defective hardware, usually disk or RAM. That's where you need to start looking for the cause.The only situation where Photoshop can corrupt a file is if the machine shuts down in the middle of a save - but again, the root cause is hardware, not Photoshop.
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Appreciate the feedback. It's a new (1 yr) computer, but who knows. Can I get anything out of it?
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It's a very old version of Photoshop, maybe it's time to upgrade the application to match your smart new computer!
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For now, need a fix if possible.