OK - jumped the gun a little early. Opening PSPad as Administrator, and
registering the file types in Settings -> Register file types seems to make the
problem go away.
Hope this helps someone.

samikrc:
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To clarify, for me, opening a file with PSPad doesn't work at all when I double
click the file, irrespective of whether PSPad is open at the time or not. If the
PSPad is not open, PSPad opens up with 'New1.txt', i.e., a blank file. If the
PSPad is already open, nothing happens. 
Only thing that works is the 'PSPad' context menu.

Hope this gets resolved soon.
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