|Tell me what I'm doing differently than you...|
I created 2 workbooks:
In [Book2.xlsx]Sheet1!$A$1 I put =[Book1.xlsx]Sheet1!$A$1
I created a folder called Test and saved both files to that folder. If I open just Book2, [Book2.xlsx]Sheet1!A1 contains:
='C:\Documents and Settings\DerbyDad03\Desktop\Test\[Book1.xlsx]Sheet1'!$A$1
Note that it is looking at the Test folder, as expected.
Then with Excel closed, I created a folder called Test 2 and copied both files into it. I then opened Book2.xlsx form the Test 2 folder.
='C:\Documents and Settings\DerbyDad03\Desktop\Test 2\[Book1.xlsx]Sheet1'!$A$1
which means that it updated the link to follow where Book1.xlsx was copied to.
Do you not see that same thing when you copy the files to the new folder?
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