when I try to open or strat any application, it opens the "open with" dialog box

I have a windows 7 laptop that has a virus, I found the file that was the virus and deleted it.

When when ever I try to open any file, it opens up the "open with" dialog box, so I can't start any applications.  The only wayt to start an application is if I right click on the file and run as administrator, then it works, it runs the app.
When I open a word document or ap picture file, it works it opens the application up.
When I try to start word, or any application, that's when it doesn't work.
I tried to go to teh screensaver, and I get the following error:
"C:\windows\systm32\rundl32.exe"
"Application not found"

I'm stumped.

I'm running malwarebytes for malware, but it didn't find anything yet.