Photoshop :: CS5 Not Detecting GPU (nVidia Geforce GTX 560 Ti)

Just recently Photoshop CS5 64-bit has not been detecting my GPU. It was working perfectly fine for over a year until about two months ago after, I guess, a driver update? I'm not sure which version may have caused it to happen but I just upgraded the driver to the one that was released today on Nvidia (GeForce 306.97 Driver), doing a clean install, and Photoshop is still not detecting the card...It's frustrating as I'd like to be able to use the Open GL functions again. I also have two hard drives if that could be any source of the problem.
 
To elaborate, I am running an SSD (C:) and an HDD (E:). I have Photoshop and my GPU drivers installed in C:.
 
Anyways, I opened up preferences and tried switching the scratch drive to E: and restarted Photoshop. I got an error saying "Could not open a scratch file because of a disk error." Pressing "OK", I received another error message "Could not initialize Photoshop because the preferences file was invaled (it has been deleted)". Pressing "OK" again gets Photoshop to start up and suddenly it is recognizing my GPU and allowing Open GL functions. But as soon as I close out of Photoshop and re-open it, it's back to not detecting my GPU and has Open GL functions grayed out.

I searched the forums for similar issues and came across with the possibility of permission issues or missing TEMP folder...however the permissions look fine and there is a temp folder in my C: drive. What's with this? I'd love to find a fix ASAP as I use PS every day and it's starting to become a real work efficiency issue!