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I opened up Photoshop CS3 and the resolution on the graphics is off and weird color palette options. I reset CS3 but that did not work.

pixelation enter image description here

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You would need to supply more information if you want to get any answers. – paradroid May 10 '11 at 23:59
OK. Just added some screenshots of what I am seeing. thanks. – zkidd May 11 '11 at 0:38

go to image > mode > select 8 bits/channel and your done.

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Your OS X font cache may be corrupt. Have you downloaded the latest OS X patch to fix fonts?

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