dweL: psynapse's comment about evars threw me off track. ;) Opening your personal.rc file from the popup isn't related to the $TxtEditor$ evar, hasn't been for a while, though I'm not sure when I made that change. I think you may be experiencing a problem with your file associations.

doy, the same applies to you as well.

Please ensure that you've both used the latest release of the LiteStep Installer. Once you've done that, please try accessing the personal files again. You can try launching them from the popup, and double-clicking on them in your file manager, let me know how it goes.

If it's still not working, then please dig through your registry for these values:
replace all the variables (AAA, BBB, etc.) with what you find and post your results. (Note that the second registry key depends on what you find for the first.)