Interestingly, DPP will display the image but not permit conversion of it -DPP displays a low-res blocky image, presumably a scaled up version of the embedded JPEG. I can slide the sliders around int he "Raw" tab of the interface, and changes to the image will occur.
However, I can open and convert the raw file with several other raw converters (ACR, RPP, Iridient Developer, Capture One) but DPP does not want to work - an error occurs in DPP batch.
DXO also reports an error and will not permit me to process the image.
Of course, none of these applications actually tell you anything useful about what may be wrong.
However, dcraw reports the following:
[B]kirkt$ dcraw -v -T -o 2 -q 3 -6 /Users/kirkt/Desktop/POTNImage/IMG_1500.CR2[/B]
Loading Canon PowerShot S95 image from /Users/kirkt/Desktop/POTNImage/IMG_1500.CR2 ...
[COLOR=red][B]/Users/kirkt/Desktop/POTNImage/IMG_1500.CR2: Corrupt data near 0xa68072[/B][/COLOR]
Scaling with darkness 127, saturation 4095, and
multipliers 1.918769 1.000000 1.785907 1.000000
Converting to Adobe RGB (1998) colorspace...
Writing data to /Users/kirkt/Desktop/POTNImage/IMG_1500.tiff ...
The conversion is successful and you get a report about where the corrupt data live.
Taadaa! It would appear that some raw converters are more robust than others in terms of handling corrupt files.