photoshop 7 and sony t30 issue

[joe90]

whenever i try to open and edit a picture taken with my sony t30 in photoshop 7, the following message pops up:

http://img260.imageshack.us/img260/9138/photoprobtd3.png (http://imageshack.us)
:confused:
can anyone tell me what this means and which of the options would be best to use?

thanks