Windows cannot open this file

For some reason over the last couple day's, when I click on an icon on my desktop to open a program, I get the the message in the title above. When I Select the program from a list, most of the time I choose Internet Explorer. I then put a check mark next to Always use this program to open this kind of file. Even then, when I close the program and return to open it a little later, I get the original error message as above. I then have to go through the same procedure to get the program opened. Can someone shed some light on this? This Windows BBS program would not open until I choose IE to open it.

IE 7
Win XP Home

 

Pete,
I have posted the log file into your suggested thread.

I might add, this problem is only on my laptop PC, no problem with the same type files on my desktop.