Word 2004 save to recent folder instead of default

[foilpan]

Is there any way to get Word 2004 to save to the last folder used
instead of the default folder configured in the File Locations
preferences?

A client of mine opens .doc attachments via Entourage, which open Word.

She "Saves As" some other file name, usually on their Xserve, then goes
about her business.

After upgrading to the most recent version of Office 2004, she reports
saving defaults to the default location and doesn't bring her back to
the most recently used folder.

I've read many people complaining about this and actually wanting it to
work the way it seems to work now.

What gives?

Thanks,

Nate