Well, he might try Adobe Photoshop Elements Version 2 or Paintshop Pro version 8.0. He might also look and see if the trials will convert....

And he might check out The GIMP.
Addendum:
Adobe Photoshop Elements can output many files that PSP can open, and version 8 opens .PSD's directly and can use a majority of the plugin packs available for photoshop. The cross compatibility with the plugins required that the PSP filter code be able to open or import .PSD and with version 8.0 they made .PSD file opening native to PSP.
The installer can, in some cases, not install the filters needed to open certain file types, if you choose not to have that file compatibility at install time, but there is a way to install filters on an existing PSP install. The unknown is probably a missing or corrupt import module, or an inability of monitor to display file due to monitor not being in at least 16 bit mode (also could be display adapter settings as to color depth or resolution or size in pixels of display). Insufficient RAM open for use in real time can also cause unknowns in PSP. Try running PSP, when you have a big file to open, with the bare minimum of other programs open.
John.