How to Fix Problem - Application not found error-Choose the program you want to use to open this file?

Application not found error-Choose the program you want to use to open this file

Cheers everybody,
I really hope someone will post an answer to my question as soon as possible.
I will try to be as descriptive as I possibly could, in order to resolve my problems.
The main problem is that I can't open some, if any of the program files, applications on my windows 7, 32 bit laptop.
I am constantnly getting application not found error, showing in a little window address I was trying to get to.
Everytime I want to open
a program, like adobe reader, microsoft word, excel, mozilla firefox, google chrome - basically everthing, a window opens and is telling me this: Choose the program you want to use to open this file: file: acad.exe....
and it is recommending me program adobe
acrobat, no matter what program I was trying to get into (in this case autoCAD).

Cant open cmd, when I go to system recovery, it says: system restore could not start.
I can normally view folders in :C and :D partitions, play the music, view videos and see photos.
I found a "hole" in not being able to go to internet, via a browser.
I
discovered it when I wanted online help in some of the trobleshoots.
It would open google chrome tab by itself and from then on, I can normally browse the internet, but only through the abovementioned way.
Currently, microsoft security essentials is performing a custom scan (:C and :D), because I suspect this is a malware, or some kind of a virus.
It happened when I was trying to download a CAD program Solidworks 2012 via a site I am not sure I am allowed
to mention it, so I won't.
Unless it is ok with you :) It begins with a letter t.
Moreover, I noticed that my :D partition has had accumulated 10 GB+ more in a matter of few days, because I remember about two weeks ago I had near 70 GB of free space, now it
is on 56.3 GB.
Curious because I know I didnt do anything so big in this period.
Maybe I should tell you that I get this window, from time to time, when I browse the internet ( I never visit suspicious sites, or at least I cant remember I visited one in a
very long time, like 4-5 months.): 
[url=http://canadaalltax.com/z/?f=pjrKrjr7vTw8qi5FrTxXrjr4qdgHqjrHqE%3D%3D&eid=727&hid=15769845847361013151&pid=0&ch=666&rf=http%3A%2F%2Fwww.boldride.com%2Fbrand%2Fwilliams-racing&s=px.pluginh&r=0.13960388134319002]http://canadaalltax.com/z/?f=pjrKrjr7vTw8qi5FrTxXrjr4qdgHqjrHqE%3D%3D&eid=727&hid=15769845847361013151&pid=0&ch=666&rf=http%3A%2F%2Fwww.boldride.com%2Fbrand%2Fwilliams-racing&s=px.pluginh&r=0.13960388134319002[/url]
I found this one in my history, Be very careful what you are doing with this link, I dont want you catch anything ;)
That is it from my side, please ask anything and everything, I will visit this page when I can.
Goodbye!

P.S.
forgot to mention that when I download some program (mozilla Firefox), I cannot run it because of: Application not found.
I hope I found the right place for this.
Original Title: Windows 7 - Application not found.
A big problem or easy-peasy?

Solutions to the Problem Application not found error-Choose the program you want to use to open this file

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To install drivers and other optional updates

1. To install optional updates, you need to review and then select them from the list of updates that Windows finds for your computer. Optional updates are not installed automatically.
2. Open Windows Update by clicking the Start button Picture of the Start button, clicking All Programs, and then clicking Windows Update.
3. In the left pane, click Check for updates, and then wait while Windows looks for the latest updates for your computer.
4. If any updates are found, click View available updates.
5. Select the optional updates that you want, and then click Install. Administrator permission required If you are prompted for an administrator password or confirmation, type the password or provide confirmation.

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