Maybe I got confused with the Win 2013 new GUI . I was not used to the backstage showing up. With the "Don't show the backstage when opening and saving files" checked, its much like the old win 2007 that I am used to. Thanks

What is the point of the setting a default location when the "Save to Local Computer " is checked? Word does not automatically save to this location when a new document is saved the first time anyway. My only conclusion is that by checking the "Save to local computer" Word does not make a copy of the document to Skydrive.