Thanks again for the help and pointers.
I'm not the most tech savvy guy, but I've been doing a bit of digging which may be incorrect, but this is what I've found so far....
CSx will open big files. Microsoft ICE creates normal JPEG files. But there is an imbalance here. CSx will only open big files of a PSB format. I can't find too much about this, but it looks like it stands for Photo Shop Big. As far as I can tell Photoshop is the only programme that creates these files, and the only programme that reads them. It seems to be an internal Adobe process for creating and managing large files - over 30,000 pixels in any direction. My large panos are automatically saved as PSB if I create them in CS5, not JPEG, TIFF or even PSD.
Large files created by other programmes don't seem to be accepted and give the error message. An in-built Adobe "glitch" wouldn't be unheard of, and maybe it's in there to protect the programme in some way. Who knows?
I may be totally wrong here, but if anyone has more info it would be welcome.