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I use both 7.0 and CS and am having the same problem in each. This problem just started a few weeks ago and our MIS Dept is baffled too. Many of the files are 300 dpi RGB .psd files from our photographer which I have flattened and saved as 300 dpi CMYK .eps. They show as being 4Meg in Photoshop and 12Meg in my directory.
How to Master Sharpening in Photoshop
Give your photos a professional finish with sharpening in Photoshop. Learn to enhance details, create contrast, and prepare your images for print, web, and social media.