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Default Opening Excel 2003 files with Excel 2007

I had a client come to me with a problem that he is having with opening an
Excel 2003 file with Excel 2007. When he tries to open the file, he gets a
message stating that the file could not be found. I logged on to their
computer and this is what I found.

Client has a file called Project List Psi.xls. When you double-click the
file you get a message stating that Project.xls could not be found. Click OK
and another message comes up stating List.xls could not be found. Click OK
again and a third message comes up stating that Psi.xls could not be found.
When you click OK, the file opens.

Why is Excel 2007 breaking up the file name into seperate files?? This does
not happen if Excel is already open.

Has anyone ever heard of this? Any input is greatly appreciated.
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