X1 8.0.1 triggering no default mail client error message

Windows 7 Professional
Oulook 2013
X1 8.0.1

I'm seeing the following message when I launch X1
"Either there is no default mail client or the current mail client cannot fulfill the messaging request. Please run Microsoft Outlook and set it as the default mail client."

Well I am running MS Outlook 2013 and it is the defaul email program so I'm at a loss why X1 is tossing this message out. How do I know it's X1, well if you do not launch X1 on startup (as I routinely do) you get to see the cause and effect and this lovely error message when you manually launch X1.

this is a new laptop with OL and X1 all installed today. Outlook seems to be working fine but X1 does not want to index the pst's - it sees them when it's indexing my files but just does not do anything with them as email.

I have two email accounts but route all email to a shared folder so I have three pst's created in the OL files folder.

Thoughts?

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