Problem solved (for no, anyway)
Ok folks, here's how to solve this annoyance:
The file is actually an Adobe patch file that gets misinterpreted as a Photoshop droplet. Search for the file name 'cc235029 blah blah blah' in spotlight and open the enclosing folder. Navigate to the offending file and zip it--I say this because I'm not sure if this fix will interfere with Creative Suite's update process so it's best to keep a copy of the original file just in case.
Leave the uncompressed original right where it is but move the zip file to someplace safe (I moved mine up one folder into the 'Adobe' folder) and then open TextEdit. From the 'Open...' dialog in TextEdit, navigate back to the 'cc235029...' file and open it letting TextEdit decide automatically on the text encoding.
Once the file is open, save it without making any changes and close it. You'll now see that the file is a Unix Executable instead of a droplet.
Rebuild your launch services database (either through terminal--Google for the command--or through an app like Onyx) and the offending menu item is now gone!
I'm anxious to try out an update to CS5, just to make sure that the file tinkering doesn't cause any problems but I don't think it should.
Cheers!