Hmmm... Laura.
I wish I could figure out what the problem is. Maybe it isn't compatible with CS3? I can re-save it without shadows for you... that's the only thing that might be causing a problem since the shadow styles are more advanced. Not sure. Unfortunately, I won't be able to work on it until after Christmas. Sorry!
Edited to add: You are all so welcome!!! It was fun for me to share it with you. So glad you like it!!!