Thanks. So we have established that Photoshop really is using all the disks. That's good, at least it can count. Now, we have to figure out WHY. After you open or create the image, please Go to Image > Image Size and post a screen shot of what you see there.
Wow okay I see. After creating the document and opening the image size, I realized that it was set to something like 300,000 pixels by 300,000 pixels. During the creation of a new project I did not realize that it was set to inches instead of pixels (I am used to it always being set to pixels). So instead of setting it to 3000 pixels it was set to 3000 inches. Well now I feel silly.
After changing it to pixels it now works as it should. No more errors. Thank you so so much for taking the time to walk me through this and help me figure out what was causing the error. I was convinced it was malfunctioning, but nope just user error! Thanks again!!