starting VM from Mac by double clicking VM file

I have always been able to start a Win 7 VM by double-clicking on the VM (package) file. That would start up Parallels and startup the VM if it is off.

Starting a short while ago, when I double click on my Win 7 VM, all that happens is that two drives mount on my desktop: [C] Windows 7-0 and [D] Windows 7-0. Parallels does not start.

If I look (using the Finder's Get Info function) at what app is set to open the VM file with, it says "Parallels Mounter." If I try to change that, the Parallels app is greyed out (it is not listed among the recommended applications).

Is there a way to fix this so that I don't have to go through the two-step process of starting the Parallels app and opening the VM from within the app?

(I'm running the latest version of Parallels 8)

 

That's very strange. What happens if you select Open with Other from Get Info? Can you select Parallels from there?

Steve