If you installed Microsoft WEB Expressions or any of that suite, or Office 2007, it Replaced the JEPG graphics filter with a newer (and broken version). I confirmed that this is the cause of the problem because I suddenly started to get the same Damaged JPEG file message in PhotoDraw after it had been running fine. The only change was that I had installed the latest version of WEB expressions. As an afterthought I loaded an earlier backup that I had of the JPEG grapics filter located in Commom Programs>Graphics>JPG. It now works perfectly again. This problem seems only to affect PhotoDraw and not the later Digital Image Suite, but since I continie to use PhotoDraw, it was a real blow. If you have a backup of this file it should work. The file is JPEGIM32.FLT. The file date I have that works is 4/30/2007 but it is possible that the file date is worng since it might have been changed when I backed it up. I have attatched the one that works.