Photoshop CS3 Hangs on Startup after Installing

had PS CS but then upgraded to OS X Leopard (which is not compatible with CS) - so I got CS3.

I installed CS3 successfully but when I try to run the program for the first time, the 'splash screen' loads fully and brings up the PS toolbars and panels... however if you mouseover anything related to PS, the 'beachball' is all you get. It spins infinitely until you 'force quit' the program (it does not crash on it's own). It 'hangs' indefinitely until you 'Force Quit'. I've even tried waiting for 1 hour.... still hangs.

What I tried:
1. I heard that the TWAIN driver can be problematic and renaming the file in the plugins folder from TWAIN.plugin to ~TWAIN.plugin forces it not to load and solves many peoples problems.

Did it. Didn't help.

2. I heard that it can be related to User Preferences. So I created a new user and tried to load PS under that user... same problem.

3. I heard that it can also be a Font problem. I ran the Font Book application and no corrupted fonts were found (a few warnings though). I removed a few, resolved some duplicates (still have 3 duplicates that don't resolve) but Photoshop behaves the same.

Anyone have ANY ideas?????

Here is a sample of the Crash Report (after I 'Force Quit') (I'm sure this will get truncated):
OS Version: 10.5.6 (Build 9G55)
Architecture: i386
Report Version: 4

Command: Photoshop
Path: /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/Adobe Photoshop CS3
Version: 10.0 (10.0x20070321 [20070321.m.1480 2007/03/21:16:39:00 cutoff; m branch]) (10.0)
Parent: launchd [110]

PID: 3296
Event: hang
Time: 10.46s
Steps: 58


Process: Adobe Photoshop CS3 [3296]
Path: /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/Adobe Photoshop CS3

ADDRESS BINARY
00001000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/Adobe Photoshop CS3
01b9a000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/AdobeAGM.framework/Versions/A/AdobeAGM
01ec4000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/AdobeACE.framework/Versions/A/AdobeACE
01fe3000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/AdobeBIBUtils.framework/Versions/A/AdobeBIBUtils
02011000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/AdobeBIB.framework/Versions/A/AdobeBIB
02034000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/AdobeCoolType.framework/Versions/A/AdobeCoolType
02314000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/AdobeAXE8SharedExpat.framework/Versions/A/AdobeAXE8SharedExpat
02349000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/AdobeXMP.framework/Versions/A/AdobeXMP
023ac000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/AdobePDFSettings.framework/Versions/A/AdobePDFSettings
023e0000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/FileInfo.framework/Versions/A/FileInfo
024c4000 /System/Library/Frameworks/TWAIN.framework/Versions/A/TWAIN
024d2000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/AdobeOwl.framework/Versions/A/AdobeOwl
02696000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/AdobeCrashReporter.framework/Versions/A/AdobeCrashReporter
026a3000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/LogTransport.framework/Versions/A/LogTransport
026ca000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/AdobeLinguistic.framework/Versions/3/AdobeLinguistic
02bb8000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/adobe_caps.framework/Versions/A/adobe_caps
02c0f000 /System/Library/PrivateFrameworks/vmutils.framework/Versions/A/vmutils
02f1c000 /System/Library/TextEncodings/Unicode Encodings.bundle/Contents/MacOS/Unicode Encodings
1768b000 /Library/InputManagers/Ecamm/Ecamm Plugin Loader.bundle/Contents/MacOS/Ecamm Plugin Loader
176a4000 /System/Library/CoreServices/Encodings/libSimplifiedChineseConverter.dylib
176b7000 /System/Library/CoreServices/Encodings/libTraditionalChineseConverter.dylib
176cd000 /System/Library/Frameworks/ApplicationServices.framework/Versions/A/Frameworks/ATS.framework/Versions/A/Resources/ATSHI.dylib
1a2f3000 /usr/lib/libmx.A.dylib
1a53a000 /Applications/Adobe Photoshop CS3/Plug-Ins/Extensions/Enable Async IO/Enable Async IO.plugin/Contents/MacOS/Enable Async IO
1a54a000 /Applications/Adobe Photoshop CS3/Plug-Ins/Extensions/FastCore.plugin/Contents/MacOS/FastCore
1a5c3000 /Applications/Adobe Photoshop CS3/Plug-Ins/Extensions/MMXCore.plugin/Contents/MacOS/MMXCore
1a6c6000 /Applications/Adobe Photoshop CS3/Plug-Ins/Extensions/MultiProcessor Support.plugin/Contents/MacOS/MultiProcessor Support
1a719000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/Required/AdobeADM.bundle/Contents/MacOS/AdobeADM
1ac5c000 /Library/QuickTime/LiveType.component/Contents/MacOS/LiveType
1ac64000 /System/Library/PrivateFrameworks/LiveType.framework/Versions/A/LiveType
1ace9000 /Library/QuickTime/DivX Decoder.component/Contents/MacOS/DivX Decoder
1cc8c000 /Library/ScriptingAdditions/Adobe Unit Types.osax/Contents/MacOS/Adobe Unit Types
1cf00000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/Required/ScriptingSupport.plugin/Contents/MacOS/ScriptingSupport
1d8e1000 /System/Library/CoreServices/RawCamera.bundle/Contents/MacOS/RawCamera
40000000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/AdobeJP2K.framework/Versions/A/AdobeJP2K
b0000000 /Applications/Adobe Photoshop CS3/Adobe Photoshop CS3.app/Contents/MacOS/../Frameworks/ahclient.framework/Versions/A/ahclient
ba900000 /System/Library/CoreServices/Encodings/libJapaneseConverter.dylib
bab00000 /System/Library/CoreServices/Encodings/libKoreanConverter.dylib

Thread id: 5dce000
User stack:
30 ??? [0x2ef9]
30 ??? [0x2fd2]
30 ??? [0x2199e9]
30 ??? [0x21998e]
30 ??? [0x602d0]
30 ??? [0x601bd]
30 ??? [0x6002d]
30 ??? [0x5fd4b]
30 ??? [0x61e8f]
30 ??? [0x7920f]
30 ??? [0xa19222]
Kernel stack:
24 _udp_usrreqs + 46 [0x449c0e]
24 _panic_dialog_test + 1469 [0x1af6f8]
24 _commpage_set_nanotime + 8240 [0x1a8f18]
3 _commpage_set_nanotime + 7924 [0x1a8ddc]
3 _exception_deliver + 631 [0x12951e]
3 _stack_collect + 237 [0x136bf4]

Thread id: b50cc80
User stack:
30 _thread_start + 34 (in libSystem.B.dylib) [0x91b75f52]
30 __pthread_start + 321 (in libSystem.B.dylib) [0x91b76095]
30 _mach_msg_trap + 10 (in libSystem.B.dylib) [0x91b451c6]

Run disk utility and repair permissions, or try Onyx to run a host of maintenance scripts

How many fonts have you got open? Consider getting the free Linotype FontExplorer, let it manage your fonts, Turn off all but the system fonts and see if you get Photoshop to boot, then you may be able to track down any fonts causing the problem, you are right that it is often a font problem that causes CS apps to hang on start-up