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Select 'User Selection' to define your own local folder path for this project.
Select 'Keep archived documents in work folder' in order to store 'Archived' files in your local work directory. The first time this feature is enabled, all archived files are downloaded to the local workstation. After this, every time the project is opened or the Refresh button is clicked, archived files will be downloaded if a newer revision exists in the Repository on the server. This may be time-consuming and it is therefore recommended to use this option only when absolutely required. When this option is not set, only files which you wish to work on, i.e. those which are locked by you, will be downloaded.
In both modes you must check-out the file with the 'Lock' option set in order to get an editable copy.