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What is Dynamic Data Exchange?

I was working with a computer, Windows XP, Office 2003, and trying to open a file from explorer for Word or Excel caused explorer to stall for 10-15 seconds every time before launching the app. Very annoying. After searching through google and reading all the other people with the same problem, (and the multitude of responses calling said person an impatient twit, google is becoming less and less helpful every day...), I finally found the tip to disable DDE when opening the files, and did so. Problem solved. Or rather, worked around. I'd still prefer to fix the root of the problem.

What am I looking at here?
 
DDE is one way for apps to communicate with each other on Windows. You probably just turned off DDE in the file association which means that instead of explorer using DDE to tell Word/Excel to open a new file it's just running "c:\blah\winword.exe c:\blah\path\to\file.doc" and launching a whole new instance to open the file.
 
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