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You are using old version of Photoshop elements. This is a reason Windows 7 having compatibility issue. To change compatibility settings manually for a program, right-click the
icon for the program, click Properties, and
then click the Compatibility tab.
Select Windows XP service pack 2 and click on Ok button. Now access the layers palette in Photoshop Element
You have to wait for the information about the compatibility of the Adobe Photoshop Elements 6 and Adobe Photoshop Elements 7. You can upgrade to Adobe Photoshop 8 which is completely compatible with Windows 7. You can check the compatibility here. Check event viewer for the error message, for this click on start menu type Event Viewer and press Enter.
It would be better to check with Adobe for what operating systems that Photoshop Element 6 would be supported. However you can try installing Adobe Photoshop Element 6 in a fresh installed Windows 7.
I hope this helps.
The error telling you that Photoshop 'will automatically shut down' is a waterd-down way of telling you there was a critical error and that it was not able to open. There appears to be a corruption in your Photoshop installation.
I would recomend uninstalling Photoshop 7 and then re-installing it again as follows:
- Click Start > Control Panel > Add/Remove Programs (or 'Programs' in Vista or Win7)
- Locate Adobe Photoshop 7 and click on it and select Uninstall.
- When it has completed, restart your PC.
- Once restarted, re-install Photoshop 7 via the CD/DVD.