Hi Brink and All:
Unfortunately, many things have gone wrong with my recent clean install of Windows 7 Home Premium from XP.
In addition to the "Open with" problem, my IE8 is missing it's "low" folder (can't find the silly thing) and I can't print. Plus several more major "bugs". Therefore, I called for re-enforcements ... the Microsoft Techy Support. Level 2 is calling this afternoon for the IE8 "bug".
The "open with" problem has been fixed.
Thanks so much for the help,