Problem in adding string value to registry with .reg file

I'm on win2k3 machine. I wrote a .reg file as below:

Windows Registry Editor Version 5.00

[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\KalleService\Parameters]
"Application"="C:\Projects\KalleService\Bin\KalleService.exe"

When double click the .reg file/say merge, it says registry modified successfully. But it has just created the Parameters key and has not created Application string value.

What could be the problem?