“Could not complete your request because of a program error” when saving as PSD in Photoshop 7.0

Today I had a strange error while trying to save an image in Photoshop 7.0. The image was opened as a JPG and I was trying to save it as a regular PSD file.

Could not complete your request because of a program error.
Could not complete your request because of a program error.

It turned out that the JPG image must have some corrupted metadata. The solution was to go to the File | File info... dialog and uncheck the field labeled: Preserve Additional Information prior to saving.

Photoshop File Info dialog
Photoshop File Info dialog

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