Error when opening XLSX file with Excel 2003 SP3, file does open but in read only mode with temporary name

I am using Excel 2003 SP3 and have the Office 2007 compatibility pack installed.  When I open Office 2007 formatted Excel files (XSLX) directly in Windows Explorer, I receive the following error if I do not have Excel already opened:
"Windows cannot find '<path to file>'.  Make sure you typed the name correctly, and then try again.  To search for a file, click the Start button, and then click Search."
Even though I receive the error, the file does open; however, it opens in Read Only mode with a name such as "Xl0000024.xls".  The number seems to increment up each time it happens.
Now here is the strange part.  If I have Excel already open and try to open the file in Windows Explorer, the file opens fine in Modify mode with no error and with the correct file name.
I Googled the error I was getting and found KB211494.  It says I should uncheck the box in Options on the General tab that says "Ignore other applications", but this box is already unchecked in my case.  Any other ideas?  This is
really frustrating as a small percentage of our company has upgraded to Office 2007 with the rest still on Office 2003.

This may be a file association problem.  To solve that:
In Windows 7:
1. Right-click the file,
2. Select "Open With" 
select [Your Program Here]
3. Check always use this program. 
In Windows XP:
1. Locate the file as you have described above
2. Right click the file
3. Select Open with from the pop-up menu
4. Click Choose default program…
5. Select Excel in the Recommended Programs box
6. Check Always use the selected program to open this kind of file
7. Click on OK.
1.  Make Excel not available from Office 2007 listed under Programs and Features in Control Panel.
2. Take a registry backup using the steps given here
3. In the registry editor window expand HKEY_CLASSES_ROOT and navigate to .xls right and delete it.
4. Exit Registry Editor
5. Undo Step 1 to make Excel available.
6.  Restart the computer and verify it the issue is fixed.
If this answer solves your problem, please check Mark as Answered. If this answer helps, please click the Vote as Helpful button. Cheers, Shane Devenshire

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