I have had this issue for a while with a user who is unable to open MS Office files via double-clicking on them. It is sometimes also the case with Corel Draw but not sure if it is related.
The Office version is 2007. The files can be either 2007 or 2003 format and could be either local or on the network - it still doesn't open.
What happens is that the window which is displaying the file hangs (although other windows respond) and after about 3 minutes Word/Excel pops up with no document open.
If I open Word/Excel first and then open the document via file->open then it is fine.
An very rare occasions Office behaves normally.
I have tried the explorer file associations methods (going to advanced and doing stuff with the %1 and /dde). I have also disabled all COM add-ins and have tried the MS Article http://support.microsoft.com/kb/921541
The Office is SP1 and is up to date via WSUS (have confirmed that it is updating).
It is not permissions cause the same thing happens when logged in via Domain Admin.
Help would be GREATLY appreciated!