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So I presumed that the 32bit Windows XP might have some issues with handling Core 2 Duo PCs (the PC we bought before this were Pentium Ds and have not given us any problems).
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This is not a 32bit issue because Pentium D processors are 64 bit.
Since Photoshop is a memory hogging app, I would look more along the lines of mayby the memory. Once you opened the app, it starts accessing memory addresses that weren't used before.
Try running
memtest86 or
Windows Memory Diagnostic