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Ick! Filling Up With Little White Squares

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My picassa viewing pages are filling up with white squares which have a small black insert. Inside the black, when magnified up it says"This layered Photoshop file was not saved with a composite image" I use CS4 and save several WIP(work in progress) in my layouts folder. These white squares however seem to be showing up anywhere.???NOT just in the Layouts folder


Plus then I have to scroll past all of these. Any idea what is causing this? I am using 3.5picassa



candyK . PSCS4.

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