Hi Vicki,
I think some of the confusion here may be that folks may have been assuming that you are inside of a Word document. From your
description, I'm guessing that you're in File=>Open from Word. In that context the F4 key will open a dropdown list (either the the
Filename or the 'Look In') one depending on where you've clicked.
When you do that, the file/folder name that is 'highlighted' after pressing F4 is the one in line with the tip of the mouse pointer
arrow in the File=>Open Window when F4 was pressed.
For example if you click near the top of the File=>Open list and use F4 you may see the first file in the list highlighted. If you
have the mouse pointer down lower in the dialog and use F4 the cursor will probably highlight a file in the last laterally equal to
where the mouse was 'pointing' in File=>Open.
For setting a default starting point to land on in File=>Open you can use the settings in Tools=>Options=>File Locations.
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Okay...hmmm.... okay... every computer i have ever worked on when I press F4
it opens a window that shows my directories, and usually whatever directory I
opened a file in stays there if I press F4 again. Am I not making my
question clear? If you press F4 does it not open your directory of files? I
am very confused. >>
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Let us know if this helped you,
Bob Buckland in Ventura county ?

MS Office System Products MVP
*Courtesy is not expensive and can pay big dividends*
For Everyday MS Office tips to "use right away" -
http://microsoft.com/events/series/administrativetipsandtricks.mspx