I have the exact same problem.
File association worked fine on XP. It does not on Windows 7. I believe what the OP meant by the usual steps was indeed what you listed as step 1-5
I had tried that and got the same result. After highlighting the desired executable in the browse window and hitting OK, you are taken back to the open with dialog and the executable you just selected does not appear there. Instead notepad is highlighted. Click
ok and the file type is associated with notepad instead of the executable you just told it to associate with.
Please unmark your answer. It is not the answer.
Here is a copy of my technet forum post with the same issue:
It associates fine on XP. However, when I installed Windows 7 it refuses to associate. I cannot figure out how to fix the problem.
I have a shortcut to a .lbr file on my desktop
I have a .exe in my program files\company name\program name
I go to control panel->default programs->associate a file type or protocol with a program
scroll down to .lbr and highlight it
click change program...
browse to the .exe
double click the .exe
The open with window only shows notepad and if I hit OK it associates with notepad. The program I just browsed and clicked on doesn't show up, nor is the associattion made.
The program is just sits in its own directory. I believe it was developed without an installer. So, I can only assume associations do not work on 7 if programs didn't go through an entore install process. It is often you just have little executables that reside
entirely in thier own directory that don't have installers.
How to get this association working?