url in lxterminal (knoppix 7.0.4 vs 6.7.1)

In knoppix 6.7.1, holding down the control key and clicking on an url string displayed in the lxterminal (i.e. "file://localhost/path/myTextFile") will start the simple text editor 'leafpad' with the text file at the url. This is broken in knoppix 7.0.4 - 'leafpad' doesn't start but instead an error message "No such file or directory" is returned.

Given that other URL schemes such as http and ftp continue to function properly in 7.0.4, and that the file url is recognized (namely the string becoming properly underlined when the cursor is placed over it), this may suggest a configuration issue somewhere?

Though very useful, the url recognition has been a 'black box' to me, and the file url problem above has eluded my search for solutions so far - Thanks in advance for any hints or pointers.