could be a generic problem with W7's file dialogs. Since file requesters are just Explorer windows of a kind, you may try the following workaround: Open a folder (a generic one, not a music or images folder) and set its view to List or detail view. Then choose Tools --> Folder Options from the menu and select to use the current settings for all folders. Once that has been assigend a global default, al lfile dialogs should respect it, but be aware that Vista and W7 differntiate folder types as I mentioned above, so you may need to repeat this a couple of times for the othe folder types as well. also, try to open files with doubleclick and drag&drop, then save them. Since AI remembers fiel paths for the last active documents, the next time yyou attempt to open something, you may be in a better starting place and the whole thing have been "unlocked" to function correctly.