It was a corrupted prefs file. PS startup with shift+ctrl+alt pressed and deleting prefs file helps for this. Strangely enough, uninstall and manual deletion of installation path, does NOT help... This concerns all PS & PSE versions.
Here is the original problem of mine, if someone is having the same problem:
I´ve got a strange problem:
My Photoshop Elements suddenly refused to start. It says "Could not initialize Photoshop Elements because there is not enough memory (RAM)". After clicking OK, it terminates and returns to desktop. It just suddenly begun doing this, before it worked just fine. In other words, there has been no changes in hw or sw in this PC... I tried to uninstall and install it again, no effect. I also tried PS 7.0, same thing, terminates to desktop when it is initialized, no message. All other programs like Office, PageMaker, Premiere etc. work perfectly, it is only PS and PSE (these are same programs in practice). This workstation is used to transfer digital images from a format/media to other etc.
OS is Win XP Pro SP1 with all important updates. Duron 700 / MSI K7T Turbo, 256 MB PC133, Pagefile tried automatic, manual 2-2000 MB, no effect.
Seems to be somekind of bug got into registry etc. Have anyone seen something like this before. I REALLY would not like to install OS and everything else from beginning...
BIG thanks to anyone who might know solution for this.