unable to open file in Photoshop.

did you try to open it with 'graphic converter'? it opens a lot of problem files and lets you re-save in a variety of formats including psd and tif that photoshop will read....
 
You could also consider InDesign, which has better comprehension of Quark in general than does Photoshop, or Gimp, which has the added benefit of being free.
 
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