Since I first reported this issue, the problem has returned.  It seems there are several possible causes for it.  The curse involves the cursor blinking so rapidly in Photoshop that it makes simple tasks impossible and most actions require repeated mouse clicks until Photoshop responses.  The previous solutions involved the following:

1. Review the plugin folder for unused filters
2. Check the RAM setting in Photoshop and lower it to 55% of available RAM.
3. Uncheck the Versions Que.

Well, I have since found two other causes for The Curse:

• Adobe’s License program:  This Adobe program runs in the background of CS3, CS4, Acrobat and Elements to be sure that you are running a “real” version of their software.  Apparently with installing additional programs (like plugins) and general computer maintenance, the program develops a problem which interferes with the operation of these Adobe products.  Downloading Adobe’s License Repair Tool direct from Adobe will fix it.  However, if you run the program multiple times, it will actually DELETE your Adobe license from that computer.  Meaning…your activation will still be locked on that computer but it can’t find it.  You may need to call Adobe to release the activation so that you can re-activate it.  It gets worse…plugins can also use this file to limit the number of installs which means that you will need to contact the plugin developer also!  My suggestion is to run this program ONLY once. If that does not fix the problem, look for another cause.

• Plugins: When I contacted Adobe in March, they said that it was likely a plugin-related issue.  They were correct.  In my case, it was On One’s Plugin Suite 4/4.5.  I had previously installed their Plugin Suite 3 on this computer.  When I installed Suite 4, I thought it would replace the previous Suite.  It did not.  Instead, it installed another set of plugins, some of which were exactly the same.  Now, on my first use, the Suite notified me that there was a new installer available for me to download.  However, it did NOT say that it was almost 1 GIG and would take almost 1-hour to download and install!  (NOTE: if you call On One, they will send you a free updated DVD.)  My problem was created by either the install of Suite 4 or Suite 4.5.  Instead of installing directly into Adobe’s “Plug-ins” folder, it created a sub-folder called “Adobe Photoshop Only” and installed in there.  That was the cause of The Curse!

I discovered the source of The Curse by doing both of the above steps.  After running Adobe’s License Tool the first time, it solve the blinking cursor.  But, it lasted only that session.  The blinking cursor came back.  So, I ran the License Tool again, accidentally deleted my license file and had to re-activate it.  The cursor was still blinking and now the On One Suite would not work because of their limit on installs.  (NOTE: On One’s Suite 3 did not limit the number of installs!)  By speaking with On One’s Technical Support to re-activate the Suite, I discovered the sub-folder.  By moving the plugins into the proper folder and deleting the sub-folder, the Curse of the Blinking Cursor was solved!