Yes, the problem seems to relate to the placed PSD, can you also post the file with the path? I can see that the PSD has transparency, you might try flattening it. When I open the ID file it mostly looks ok, but I can change the contour options and choose one of your PSD paths and get the problem:
![Screen Shot 2014-07-27 at 8.33.55 AM.png]()
![Screen Shot 2014-07-27 at 8.36.19 AM.png]()