Hold down the shift key when you click on a file that you want to change the "asscoation" for.
Choose "open with"
Choose "choose program"
In the box that opens, choose what you want to use to open the file.
Check the box for "Always use the selected program to open this kind of file"
or
In Windows Explorer or My Computer click tools (in the menu at the top)
Choose "Folder Options"
Click the "File Types" tab
Here you can edit associations for file extensions.
The first method is probably the easiest (just do it as you access the file type in your day-to-day computing), the least confusing, and the lease error prone. Whichever method you use, the icons should revert back to the ones for the new program associations on the next boot.
You have really big mess there. I assume you uninstalled the Nero demo and that didn't fix the problem. Next time you install a program watch for the file association change option. Use it sparingly, and with caution.
Perhaps someone else can suggest an easier option for you...I don't know of one.