Smart Object Edit Failure

Hello all,

I have built an application which uses the Photoshop API for processing images for a client. Several PSDs the client has supplied work perfectly. However, they provided me a new PSD that fails with the following error: Smart Object Edit Failure (type InternalServiceError). 

 I admit limited knowledge with Photoshop to begin with, but as far as I can tell, this new PSD has a smart object layer named "watermark" just like the ones that work. I can't see a noticeable difference. Does anyone have an ideas?

And if anyone from Adobe is hanging out here, my feedback would be that this error is not terribly useful. A little more detail would go a long way in troubleshooting.

Anyway, thank