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Photoshop 7.0 large file size, performance issues

I have someone working w/ a Photoshop file that is 239MB her computer is a 2.79 p4 w/ 1GB RAM and 50GB free on the hd. Everytime she does something to this file it takes forever!!!! opening, cutting part of a layer, saving, moving graphics around. The file measures 24X36" printed and is at 400 dpi. I've talked to adobe support and they say this is to be expected, but she refuses to accept that as an answer. Does anyone out there have anything else I can do? She's also working w/ 14 seperate layers on this file, and says she can't merge any of them because what if she has to get back and change something on one of the layers....

This project btw, is a series of collages of photos and drawings of projects my company has worked on and is going to be printed on heavy high gloss paper, mounted, and hung on the wall.

I've got a dealine of figuring out the problem by tomorrow and since apparently adobe can't help, I'm hoping that you can.
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There is only one disk on the computer, and it was defragged Friday afternoon. The RAM usage is already set to 75%. and the ram is maxed out at 1 gig. I will try turning off the autoprotect and see how that works
Is the file in RGB mode? PS will work slower with CMYK.
how do I check and change if necessary?
Image > Mode

But you will also see it in the title bar of the image, inside the paranthesis. There you will see what color mode the image is in, and also the bit depth. While you're at it you can also check that the bit depth is 8 per channel not 16. If it is 16 you'll need to change it to 8 the same place.

Now, as I understand the purpose is to print this image. Before printing (If you use a high end printer or commercial printer) change the image to CMYK. The thing is; when you work in photoshop, regardless if the image shall be printed or not work in RGB mode. If the image shall be printed convert it to CMYK before printing or sending it to a commercial printer.
Another thing....Is 400ppi really necessary? This resolution indicates that it shal be put out at a very high line screen, like an art book or something. And even then 400 is too much. The size of the image indicates that this is more of a poster or something, and then it will not be output in the high line screen 400ppi indicates.

In spite of common belief the image quality does not get better the higher the resolution, but is a question of using the correct resolution for the output device. Check with the printer what line screen will be used to reproduce the image and adjust the resolution accordingly. You can use Photoshops Auto feature for this: Image > Image size and choose auto. There you can put in the line screen that will be used and have PS calculate the correct resolution for you.

For an image of this size I think a line screen of 85 i enough, and then the resolution should be 177.

Se PS Help for printing and resolution tips.

By decreasing the resolution the image will be much easier to work with.

Hope this helps.
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If the file is to be printed then I would not change it to RGB mode. It'll have to be converted back to CMYK later and there will be loss of colour density due to the differences between both colour spaces.