Error creating Flash Projector file! (only APP)

Here is the exact error I receive:

Error creating Flash projector file. Be sure that Flash is installed correctly and that the destination file is not locked or on a locked drive.

I am able to produce an exe but not the app. :m:

I have:
Flash Player 10 debugger version
Mac OSX
Flash CS3

This is the first time I have ever had this problem…
Please help with suggestions.

Thanks!