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I open my customer.docx from a very nested folder. I make some changes and then I want to save the changed file as customer_response.docx in the same nested folder. That is, I want to have the original customer.docx and the new file customer_response.docx in the same folder, neatly next to each other.

The problem is that the Save As dialog always opens up in the same default folder; the default folder is easy to change, but I don't want any default folder. I want change so that Save As defaults to the folder where the current file is located.

I found something similar for Excel and tried adding a key to HKEY_CURRENT_USER\Software\Microsoft\Office\12.0\Word\Options but that did not work!

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Does this also happen with a simple and less-nested folder? – harrymc Mar 22 '11 at 15:05
Yes, it happens for any folder. – Roger Holmgren Mar 23 '11 at 15:02
MS Office is intended to be user-surly. It's working as designed. – Daniel R Hicks Sep 27 '12 at 11:28
I'm seeing the same problem currently, but no idea what the solution is :-( It worked as I expected a second ago. – Rikki Mar 7 '14 at 18:36
Interesting, I just noticed that if I keep Word open (rather than closing it between each file), then this works as expected. If I entirely close Word, it defaults the Save As... to Documents. – Rikki Mar 7 '14 at 18:40

Under the assumption that something is wrong with Word, you might try to run diagnostics as described in How to use the repair process in the 2007 Office programs :

  1. Start the 2007 Office program.
  2. Click the Microsoft Office Button, and then click program_name Options.
  3. In the program_name Options dialog box, click Resources, and then click Diagnose next to office diagnostics.
  4. Click Continue.
  5. Click Run Diagnostics.
  6. If a problem is identified, Office Diagnostics may offer to run the repair process.

If this doesn't work, try in Control Panel / Programs and Features to right-click Microsoft Office, select Change and then choose Repair. (This is done for you if the method described above finds any problem.)

The last and desperate repair method is to uninstall Microsoft Office, then reinstall (if you have the installation media).

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The Diagnostic Tool didn't identify any problems. Repairing didn't work either. Also I don't really want to go through the hassle of uninstall/install, which seems to be the fix for every Microsoft product... – Roger Holmgren Apr 5 '11 at 15:57

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