Go to:
Control Panel
Folder Options
File Types tab
scroll down and select the msg file type
It should say MSG - Outlook item.
Pres the advanced button
Select Open and then Edit.
In application used to perform this operation it should say:
"C:\Program Files\Microsoft Office\OFFICE11\OUTLOOK.EXE" /f "%1"
The DDE box should be checked.
Application should say Outlook and System should say topic.
Are these what you have listed? If not, you can try to enter that manually.