a) Delete Editor Preferences :
- Double click on Desktop shortcut > This launches welcome screen.
- Click on Edit and keep Control+Alt+shift pressed while Editor is being lunched.
- You will get a screen to delete Editor settings. Choose to delete the preferences and relaunch Editor.
Go to the location where PSE is installed. If it is installed on default location on XP, the location would be C:\Program Files\Adobe\Photoshop Elements 8.0\Locales\en_US\Plug-Ins\Import-Export\Twain_32.8ba.
Rename Twain_32.8ba file to anything and relaunch application.
c) If above doesnot work, try emptying some space on harddisk using disk cleanup utility.