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What's happened ? Every time I try to do a crop, I get a message (after a pause)
"Could not complete your request because the scratch disks are full"

Well, my scratch disk is configured to be my 2nd, non-system disk, which is 20Gb with 11Gb free. I just had a look while CS2 was displaying the error message, and it had only 7Mb free - so does indeed look full - but what can I do about it ? Clears back down to 11Gb free once I OK the error message in CS2. Is there any way of constraining the scratch disk size, or does it really need 10Gb + of free space ?

It's hard to know the exact answer from here, but I'll ask a series of questions which might hopefully get you on your way.

How large is the current document? Does it have lots of layers?
How many levels of History States are set in your PS preferences? (i.e. how much state are you asking PS to keep around in scratch?)
How many levels of Image Cache?

Just did a google search on the same problem, came across someone else who'd experienced the same problem. Turns out istead of cropping to 3008x2000 pixels, I was trying to crop to 3008x2000 cms. Or 3x2 metres.

And Photoshop ran out of memory - sheesh!

I'll get my coat.

The simple answer: of course!

Personally I never use the Crop tool to resize: that's what Image Resize is for. And when I'm Cropping it's inherently to remove pixels, not add them!
But of course PS is infinitely flexible...