I had this error twice and it drove me nuts. Turned out that Chrome had messed up a registry entry at:
HKEY_Local_Machine\Software\Classes\htmlfile\shell \open\command

Although it could be one of a few other issues, the best thread I've found on this problem is over at Slipstick (link to solution). You should find what you need there, they've vetted this issue pretty well. Good luck!