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I have TextPad open with a Workspace, I have .txt files associated with TextPad from within TextPad, and I have Allow Multiple Instances To Run unchecked.

When I double click on a .txt file, it opens in a new instance of TextPad. I have to right click on the file, and select Open with TextPad in order for it to open in the open Workspace instance.

Try undoing the file association made in TextPad and make it using Control Panel/Default Programs/Associate a file type with a program.

I hope this helps.