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Labs 3.0 doesn't checkout to the local computer

Question asked by ddenev on Oct 23, 2008

In Word 2007 there is an option in Word Options->Save which says "Save checked-out files to" and for me it is set to "The server drafts location on this computer" and a local folder is set. Nevertheless whenever I checkout a file from Word the checked-out copy is stored on the server and not locally. Is this a bug or am I missing something? thank you.