|Further proof on an XP Pro machine...|
I have a folder called Workshop on my Desktop. If I open this folder, the title bar says:
C:\Documents and Settings\My Name\Desktop\Workshop
I also have a My Documents folder on my Desktop which I happen to know is actually stored on a network drive somewhere deep in the bowels of our corporate Data Center in some far off city.
If I open My Documents the title bar says:
while its actually path in Properties is something like \\DFRGTYC\My Name\MY DOCUMENTS