A lot of forum threads provide a dead link to a page on sizzledcore of a very small dll fix (psicon.dll).
I tracked down the fix and hosted it myself as a zip with instructions on how/where to save the dll for others to benefit too:
Not sure if the forum rules allow a newbie to post links... so maybe you can work out the link from below, until I post enough in here to bypass the spam rule in here.
Instructions
1
Open the "Start" menu. Choose the "Default Programs" option.
2
Click the "Set Default Programs" option.
3
Click "Windows Photo Gallery." Choose the "Set this Program as Default" option.
4
Click the "OK" button.
Then change to the specific file types setting in default programs and scroll down to the .PSD and change this to Preview using Windows Photo Gallery. Then click "OK" button.