Want to get 2 way Video every time with Logitech Quik Cam Fusion, using Skype. Brand new webcam..

Did PS7 open when you double clicked on the picture file? or did it open after the transfer completed.
PS7 may be set as the default picture editor which is slightly different than the default associated program. Double clicking on the file will be able to tell us the difference.

what type of internet are you using. some modems/routers are set to use the old style PPP authentication where the device doesn't keep you logged in, instead it logs you in as needed, it's a process that's similar to a dial up connection but for DSL.

Oops, please ignore the previous posts, (seems quomon deals with multiple windows in a strange way)

this sounds a little more like a connectivity issue. I'm sure you're using a high speed internet connection, but a firewall or network intensive program may be interferring.
what is your setup like? modem connected to a router connected to your computer via wireless/wire?
if you are sure you don't have spyware, try connecting your PC directly to your modem (make sure windows firewall is at least enabled and disable the others)

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