Photoshop not recognizing PSD files

My PSD files are not being recognized. When I go to Properties and then Open With, and browse to the Photoshop application as usual, I am unable to select Photoshop as the program to open my file. I am completely baffled.
It looks like the Open With function is not recognizing PhotoShop, and I do not know if this is a Photoshop error or a Windows error.
Other Adobe programs are working and are recognized just fine. I am using Windows 7 and Photoshop CS4. I am running up-to-date Norton 360 so it is extremnely unliklely to be a virus.
Help please!

Sounds like a basic system problem, not a problem with Photoshop per se...
First, Photoshop should have installed itself so that it would automatically be in the list of programs available to open that file type.
Second, if it's not there by default, browsing to the Photoshop.exe file should make it work as you expect.
I've just opened a file from my desktop using Right Click, then Open With, and choosing Photoshop.exe as you have described. However, in my case Photoshop is already in the list of Recommended Programs.
Out of curiosity, do you see it in the list of "Other Programs" toward the bottom of the Open With dialog? You'll have to click on the little arrow to the right to see them.
-Noel

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