Sounds like a corrupt pref file, if
PSE is like the full version - when weird things happen it is a good sign that prefs are shot.
From the help system:
"To restore all preferences to their default settings:
Do one of the following:
Press and hold Alt+Control+Shift (Windows) or Option+Command+Shift (Mac OS) immediately after launching Photoshop or ImageReady. You will be prompted to delete the current settings.
In Mac OS, open the Preferences folder in the System Folder (Mac OS 9.x) or Library folder (Mac OS X), and drag the Adobe Photoshop 7.0 Settings folder to the Trash.
New Preferences files will be created the next time you start Photoshop or ImageReady."
[your_local_install_path/Adobe/Photoshop%207.0/Help/1_4_20_0.html]
Regards,
Stephen.