Unable to open .xls and .xlsx files from windows explorer or from Microsoft outlook using MS Office 2007

When I double click on an .xls or .xlsx file Excel will open up, but I never see the file open up.
If I right click on the excel file and say open with excel I then get the following error:
"Windows cannot find file c:\test\test.xls.  Make sure you typed the name correctly, and then try again...."
Everywhere I looked seems to indicate the file associations was messed up so per a technical document I deleted the .xls and .xlsx association and then ran the Office 2007 repair and rebooted.  Still not working even after office puts the .xls and .xlsx
file associations in.
Here is what I see the in .xls and .xlsx for the &Open action:
Application: "C:\Program Files\Microsoft Office\Office12\EXCEL.EXE" /e
UseDDE: Checked
DDE Message: [open("%1")]
Any guidance would be appreciated!
Greg

In the ened I had to go into Excel Options, Advanced, General, and uncheck the "ignore other applicaitons....".  BUT this only worked after doing the Office 2007 repair.

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