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As with Valechox, my current experience is that on the Mac side, with Parallels not running, my Mac Office files became associated with the Office apps on the Parallels/WinXP side. (I generally don't use Office on the VM side - except in this case for beginning to explore Office 2007 - so have...

Upgraded to Parallels 3.0 - went fine. Installed Office 2007 in WinXP VM - went fine (but took long time) Subsequently: when in the Mac Finder with Parallels not running, double-click on a Mac Word doc (.doc) and find that it wants to launch Parallels and Word 2007!! Similarly, with Excel...