Original Folder Ambiguity

Question

Exactly what does Original Folder mean in File Handling? I have it checked and this is what happens.
I open a file from Folder "Annette" on Drive G>Edit. I make a copy, do final sharpening etc, and save it as Final, from a .psd to .tiff, but now it is directed to Folder "Steens" on Drive E, what PS had open before I opened Annette.
This is driving me nuts, and has been since CS5 was installed. I've gone through reset prefs and still it happens.
Original Folder means what? I see no behavior difference checked or unchecked. The original name of the particular file was the Nikon number, which I changed to "Final.
I need the default to be whatever is the actual folder from which the current file is derived. Changing the name should not consign that Save somewhere else.

Answer 1

You want so much to make a dupe of your document to a psd file in the same folder you document is stored in with the  same name and have a .psd extension.
Paste the following code into a file named DupeDocToPSD.jsx and place it in your Photoshop's Presets\Scripts folder.  You will then see in your Photoshop menu File>Scripts>DupeDocToPSD  you can use this to dupe your document if your document is associated with a file(that is has been saved to disk) and the there is not file in that folder with the name DocumentName.psd. 
This script is written in javascript and the actual work is done in the function named code().  That function is simple and should be easy read and understand the rest is boiler plate to make sure the scripts runs in Photoshop that there is an active document in photoshop and ensure you edit envirement is the same as it was before the script was used.
/* ==========================================================
// 2011  John J. McAssey (JJMack)
// ======================================================= */
// This script is supplied as is. It is provided as freeware.
// The author accepts no liability for any problems arising from its use.
/* Help Category note tag menu can be used to place script in automate menu
<javascriptresource>
<about>$$$/JavaScripts/DupeDocToPSD/About=JJMack's DupeDocToPSD .^r^rCopyright 2011 Mouseprints.^r^rScript^rNext Line!</about>
<category>JJMack's Script</category>
</javascriptresource>
// enable double-clicking from Mac Finder or Windows Explorer
#target photoshop // this command only works in Photoshop CS2 and higher
// bring application forward for double-click events
app.bringToFront();
// ensure at least one document open
if (!documents.length) alert('There are no documents open.', 'No Document');
else {
     main(); // at least one document exists proceed
//                            main function                                  //
function main() {
     // declare local variables
     var orig_ruler_units = app.preferences.rulerUnits;
     app.preferences.rulerUnits = Units.PIXELS;     // Set the ruler units to PIXELS
     try { code(); }
     // display error message if something goes wrong
     catch(e) { alert(e + ': on line ' + e.line, 'Script Error', true); }
     app.preferences.rulerUnits = orig_ruler_units;     // Reset units to original settings
//                           main function end                               //
// The real code is embedded into this function so that at any point it can return //
// to the main line function to let it restore users edit environment and end      //
function code() {
     var thedoc = app.activeDocument;
     // getting the name and location;
     var docName = thedoc.name;
     if (docName.indexOf(".") != -1) {var basename = docName.match(/(.*)\.[^\.]+$/)[1]}
     else {var basename = docName};
     // getting the location, if unsaved can not continue;
     try {var docPath = thedoc.path}
     catch (e) {alert(docName + " is unsaved so the destination folder can not be determined DupeDocToPSD aborted");
          return;
     var psdFile = (new File(docPath+'/'+basename+'.psd'));
     if (psdFile.exists) {
          alert(psdFile + " file exist DupeDocToPSD aborted");
          return;
     activeDocument.duplicate();
     SaveAs( psdFile , true );
//               Helper Functions                         //
function SaveAs( FileName, inEmbedICC ) {
     var SaveOptions = new PhotoshopSaveOptions();
     SaveOptions.embedColorProfile = inEmbedICC;
     app.activeDocument.saveAs( FileName , SaveOptions );