Sorry I haven't got back sooner and I don't have much time now.
Glad you've been able to clear up a few things, especially with regards what you called MS Works, that and Office, which is what you seem to have are entirely separate programs. MS Works was the cut down and cheap version of Microsoft Office, I didn't think they still had it as the version I have is 2001 and is what I used on the WinME OS.
You seem to have the full version of Office 2007 which includes Outlook, that can be used as an email program.
I think what it is you probably have to do is get Internet Explorer working with the protocols you've mentioned.
Sorry but I have no idea about how to do that, have you had a look in the tutorials here to see if you can find anything there to do with hyperlink protocol.
I did notice from your pictures, thank you for those, that you have the box ticked to always use Firefox to open the protocol, perhaps that is why you can't see any other choices Windows is doing what you told it and always opening using Firefox.
I hope one of the experts sees your post and can help you out as I'm sorry I can't, in the meantime I'll see if I can find anything else out that may help you, I hope you can get your problem solved soon.