Main issue:
(1) I double click on a word file (or other file)
(2) Word 2007 opens
(3) Error message over the original folder: "Windows cannot find 'C: etc etc'. Make sure you typed the name correctly, and then try again."
(4) Double-click on same item again - it opens with no problem. Double-click another item in same folder it opens with no problem. Double click an item elsewhere and you get same problem.

SOLUTION:
-Run regedit (Start menu, run, etc.) and go to this key: HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Office\Word
-Export all the addins to a reg file (for backup)
-Then delete all of them in the registry
-Now try opening a .docx or .doc file in windows explorer and find that document may loads without error messages!
-now exit MS Word and open the reg file(s) you exported and import them back (this one can be ignored lol.)
-try opening a .docx file again and it appears that the problem is fixed.