well i found the solution and twas quite easy, so i thought id pass it on in case someone else has the misfortune of seeing the error.
~ Choose File...Preferences...File Locations
~ In the File Types wndow, scroll down to and highlight Undo/tempory files
~ Write down the folder name where these files are stored.
~ Shut down PSP
~ Go to the location you noted above - there should be a file in that folder with a PSPAutosave extension. There may be more than one.
~ Delete the PSPAutosave file(s)
~ Restart PSP