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The Error (1007) creating CGS Window is something I have seen far too much of on Leopard when using memory intensive apps (e.g. RapidWeaver often fails to publish for me with this error message - my site is very large and uses a lot of RAM to publish). I suspect it is an OS bug rather than an app specific one, but it is incredibly annoying when it occurs. If you check out all the messages in console do you also start to see lots of malloc errors around the same time? That has been another symptom I have seen when this error occurs.