After much dismay, I managed to reinstall PSCS and that did not solve my issue. Out of anger really I tossed the image that was hanging up and moved onto the next. It worked. It converted 300 photos 17mb each with NO issues. Apparently Photoshop didn't like the photo of some woman who looked like a man doing the splits at a wedding reception. Honestly, I can't blame it! I have 12.32GB left on my PowerBook's hard drive. I have a LaCie 160GB hard drive with 117GB left on it. I have Photoshop set to use the PowerBook as the startup scratch disk and then the LaCie set to be the secondary. I've had less space on my hard drive during the week and did not run into any problems. However, today, I am running a batch action (something I have been doing all week) on approximately 300 images. The action resizes a JPEG by 50% and then saves and closes it. I got 100 images in and PSCS said my scratch disk was full. I have done the following and found no joy: Swapped the scratch disks around using the larger as the primary and the smaller (internal) as the secondary. Allocated 75% of my RAM to Photoshop closing all running programs including dashboard widgets. Closed Photoshop and re-opened. Rebooted from a warm boot Shut down the PBook and then turned back on 10 minutes later also shutting down the external LaCie. Double Checked for space--found 12gb and 117gb as previously mentioned. Used the LaCie as the ONLY scratch Disk Used the PowerBook internal as the ONLY scratch Disk. Increased Cache levels to 7 (photoshop preferences) Set aside 15 photos in a new folder and tried to run it with 15 photos. I think I am fresh out of ideas. I can buy a 500GB external today but that obviously wouldn't solve my problem as I really don't think this is a space issue. Would anyone have any other recommendations to fix this? My next step is to reinstall photoshop cs while I wait for answers to my post. Thanks all.