File-Open has lost its memory

In XP, when navigating through files and folders in a File-Open dialog box
within Office 2003 programs, the operating system or program seemed to
"remember" the folder level you were last in. When you next clicked on
File-Open, it assumed you more than likely wanted to be transported to the
same folder level you were last in.

Apparently, this functionality has been eliminated in Vista. In any Office
2003 program, you seem to be transported to the "root" level, ie, Documents,
or Computer, or Owner, etc. even if you were previously deep below that
level.

This might be intermittent, but my memory says Vista or the program always
returns you to the "root" in Office programs, but not necessarily in other
programs.

Is there any way to go back to the XP method, or can this be customized so
users can click on a Preference to say which way they would like to be
transported?

Perhaps this is more an issue with Office, but since the behavior changed
from XP to Vista, there must be some effect Vista is having on the behavior.

Different question: in the File-Open dialog, is there a way to Customize the
location Icons which appear on the left side of the dialog, so the user can
select which commonly used location Icons he or she wants to appear in this
left margin? And preferably these can be set differently for each program.
If this can be done, please specify how.

Again, this seems to be governed more by Vista than by Office.

Thanks.