Changing Default Programs

So here's my problem, I want to change the default program that opens a .doc Word 97-2003 document to Word 2007. Seems easy right? Wrong...

Here's the typical steps for changing the default software as far as I know

-Right click the word97-03 document and select Properties
-Select the change button for "Opens With"
-Select the program you want to open the extension
-Click the "Always use the selected program to open this kind of file"
-Select Ok, then Apply and you're rockin....

This doesn't work if the "Always use the selected program to open this kind of file" check box is Grey-ed out!

Here's a picture of it. (Sorry, I'm new to image hosting so I did a search for a free Image Host and am using it, let me know if it doesn't work)

http://www.imagebam.com/image/a5bfb47916564

Any help would be greatly appreciated! I already tried doing the other way to change the default application using folder options, File types so that way doesn't work either.

Microsoft didn't help either by the way...checked out their forum and no resolution.

Nope, I tried reinstalling word 2007 and it didn't seem to do anything. It wants to open with WordPad instead of word.