Right Click on the image and select Open With.  Then select Choose Program.  Scroll to the program you want to use and highlight it.  Check the box that says Always use the selected program to open this kind of file.  Hit OK.

Are you using Sidebar Styler to edit?  If so, you should be able to rightclick on an image and select edit in photoshop for instance.  I don't have Sidebar Styler in front of me right now (on XP at the moment).  If you don't have SS, I'd suggest getting it, (http://www.stoyanoff.info/blog/2007/01/17/windows-sidebar-styler/) it's loads easier.  Are you using SKS to build the sidebar?

What graphics programs do you have installed?  Whatever filetype that image is, it's being associated with Paint.  You need to change that.  Find an associated image in the sidebar folder and do what I posted in the first reply.  See if that helps.

I'm not entirely sure.  I thought it could be made that way also as some SD ones have matching sidebars.  I'd still say use sidebar styler though.  That's what I use.  Just use the default or something else and then start changing it.  One of the most complete Sidebars is the one I did for Plastic Fantastic.  Everything is skinned on it.

paint is not the default out of SKS, psp7 is. I did check just to be sure and it is. it's kind of a non-issue though, it only allows one to alter the background image and quite frankly, the default looks good. I had the freebie version of object dock, I may look at this one again.

thanks for responding, I appreciate your help. 

kind of the same information in different presentation, sorry to have switched gears on you without ample notice.