Well, hard to say, but consider this:
Moving fonts to the windows\fonts folder does NOTHING. You have to install fonts that are not installed. This isn’t your problem (most likely), but just know that fonts must be installed.
One of two things that I can think of for this problem. You either have a corrupt/missing font, or the adobefnt.LST file has become corrupted.
Adobefnt.LST files are created for apps like Photoshop and Acrobat (I don’t know what else). You can search your hard drive for the following "Adobefnt*.LST" without the quotes. Rename those files from LST to OLD. Start photoshop and the file will be rebuilt.
If you still get the error message, you may have a corrupt font. You have to play the 50/50 game. Move 50% of the fonts out of the fonts folder, restart PS. If error occurs, put them back, and move out the other 50%… you get the idea. That may help isolate a corrupt font.
Start there, come back if it doesn’t help.
Peace,
Tony
change your windows font from small to large (or vice versa, depending on how you’re set up)… when asked, (somehting like: "The requested fonts were previously installed. use the ones on disk?") reload from disk instead of from the hard drive.