I recently upgraded to CS5 and am having the exact problem detailed in this post: http://forums.adobe.com/message/3100823
It's driving me nuts as this worked perfectly in CS4. The two possible solutions outlined in that thread do not work. Since that thread is over a year old, and I cannot find any solution via Google, I thought I would ask the question again and see if anyone has a solution. I am using Windows 7 64-bit if that matters.
Perhaps it would be best if you would describe exactly how you'd expect it to work, then describe how it's not doing that.
The message kind of gets lost once a person goes off and reads another thread.
This is a quote from the thread which exactly describes the problem:
I just created an action with two steps:
step 1 > Save for Web to /folder1/filename
step 2 > Save for Web to /folder2/filename
I run this action and it works, saving the file "filename" in both /folder1 and /folder2.
However, if I now check the "toggle dialog on" (so that i can save the file with a different name), the locations specified in step 1 and 2 are completely ignored and it just defaults to whatever folder was last used to save a file in Photoshop. Now before I save the file I need to manually browse to the folder I wanted.
So now it's no longer possible to specify a folder to save to while at the same time prompting so that you can change the name of the file if needed. This is something that worked fine in CS4. Apparently now Adobe (in their infinite wisdom) has decided that it's better to ignore the save location if the dialog is toggled on? What is the point of having a Save step in an action with a location specified if it's just going to be ignored?