I am facing the same trouble in my CAD office. Whenever that particular 'browse for' dialog box is used you can't browse for any sub directories except for the direct file path to the last file/folder you had open. It is bloody annoying and extremely slow when you have to navigate to a network drive through the 'Network' tree every time.
It only seems to be a Windows 7 / Vista Issue.
Two places i have noticed it is used is when you search for default file locations (options) and in the pack and go window.
Is there a way to add favorites to this 'browse for folder' window? Probably a registry tweak or two...
Why don't these features use the usual file>open dialog box?
Windows 7 x64, Solidworks 2013 x64 Sp3.0