I'm using Launchy with Windows 7, but I've noticed that certain short cut's don't work with Launchy - the icon appears as the generic application icon and the application fails to start.
Clicking on the short cut directly (either on the start menu or in explorer) works fine.
This only happens on a couple of shortcuts - ones that I've noticed so far are Windbg and VirtualBox.
Any idea on what might be causing this and how to fix it?