[SharePoint 2007] “Use my local drafts folder” Default Option
When opening Office documents in a Microsoft SharePoint document library that requires Check Out, users generally receive a pop-up window to confirm that they want to open and check out the document, such as the one below:

The pop-up window has the option to “Use my local drafts folder.” For many users, using this option can cause issues with the check-in and check-out process. Changing the default on this pop-up is NOT done on the server side. It is a behavior specified by the local Office client.
To change the drafts folder default options, open Microsoft Word 2007 or 2010 and go to the Word Options (Office Button > Word Options). Under the “Save” section, change the “Save checked-out files to” option to “The web server” (2007) or “The Office Document Cache” (2010). This will change the default of the “Use my local drafts folder” to not checked.
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My question is, if this is NOT checked, where does the darn file go when you check it out? Looked all over for it and can’t find it.
Not 100% sure, but I assume since it isn’t storing it “locally” that it is simply loaded into memory for the application opening the file. If it were stored “locally” it would only be a cached version in the temporary internet files.
Any idea how to supress this dialog? It is totally unnecessary once a user sees it a few times. I always want SharePoint to use my local drafts folder and don’t bug me about it each time.
I don’t know of anyway to do this. Don’t think it’s possible.
You can suppress this dialog by opening the browser Tools > Internet Options> Security Tab > Trusted Sites and adding the site url to the trusted sites. This will suppress any futher notifications.
Client side settings is not a suggestible solution, need to avoide that popup from some settings in the document library.
Unfortunately, that’s not possible. This behavior is 100% client-side and is controlled by the local installation of Microsoft Office.
Helped me a lot.. Thanks for sharing