Hi Cheryl and welcome to the forums
Photoshop LE, is the 'chopped down' version of Photoshop, and it is quite possible that as such, it doesn't support the .eps format.
I have never used LE so I am not sure, but what you could try and do is see if you can save from LE an .eps file format. (Save as). If it lets you do this, then in theory you should be able to read .eps files also? Just a thought.
Wild Stab: Maybe try renaming the file? lower case etc?
Anyone else got experience with PS LE?
hope you get it sorted [righton]