Strange that should happen on a new install. I can assure you Front page is fully compatible with 7. You seem to have locked the associates somewhere, with another program.
However. Try a couple of things. Easy one first!
Find an .html file on your computer and right click it. Choose "open with",
In the drop down menu which appears, If it is not on the list, then select the "choose a default program", Click the small square on the bottom left "Always..etc", then "Other programs" Browse to "Program Files" (or program Files (x86) if you are using 64Bit) and find the
FTP.exe. It is probably sitting in your Office folder. See if that solves the problem.