File Locations no working correctly?

When I open a drawing, under System Options - File Locations - Document Templates I have deleted all paths except one.

When I'm in a drawing and want to replace the Title Block Template by right clicking and going to properties, it takes some time for the dialogue to come up and then it defaults to a location not even listed in the Folders dialogue box.

I've logged out and rebooted. SolidWorks 2011 keeps the setting but seems to ignore it when I want to replace the title block.

I've read it "might" have something to do with the registry settings and user access to the properties file but that doesn't seem to be the 100% answer.

Another user next to me does not have the same problem.

We do not use PDM or a license server. We are on single user license installs.

Any ideas?

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