Thanks for sending the diagnostic file!
Before anything else, see if using View > File Associations... within XmlNotepad, then assigning XML from the dialog that appears, fixes things by itself.

That may be enough to re-write the missing registry values.
If that doesn't work, please download this zip file and extract the .reg file, then double-click it. That will add the values which it looks like are missing from your registry, based on the diagnostic file.
xmlnotepad_reg.zip (604 Bytes)
For reference, this is what's in the .reg file:
[code]Windows Registry Editor Version 5.00
[HKEY_LOCAL_MACHINE\SOFTWARE\RegisteredApplications]
"XmlNotepad"="Software\Microsoft\XmlNotepad\Capabilities"
[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\XmlNotepad]
[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\XmlNotepad\Capabilities]
"ApplicationName"="XmlNotepad"
"ApplicationDescription"="A simple XML editor with XSD intellisense and XSLTpreview"
[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\XmlNotepad\Capabilities\FileAssociations]
".xml"="XmlNotepad"
".xslt"="XmlNotepad"
".xsd"="XmlNotepad"
".xsl"="XmlNotepad"
".xdr"="XmlNotepad"
[HKEY_LOCAL_MACHINE\SOFTWARE\Classes\XmlNotepad]
[HKEY_LOCAL_MACHINE\SOFTWARE\Classes\XmlNotepad\shell]
[HKEY_LOCAL_MACHINE\SOFTWARE\Classes\XmlNotepad\shell\edit]
[HKEY_LOCAL_MACHINE\SOFTWARE\Classes\XmlNotepad\shell\edit\command]
@=""C:\Program Files (x86)\XML Notepad 2007\XmlNotepad.exe" %1"
[HKEY_LOCAL_MACHINE\SOFTWARE\Classes\XmlNotepad\shell\open]
[HKEY_LOCAL_MACHINE\SOFTWARE\Classes\XmlNotepad\shell\open\command]
@=""C:\Program Files (x86)\XML Notepad 2007\XmlNotepad.exe" %1"
[/code]