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Hmm, way off the beaten path here, but did you have a temporary drive available and use that last? So Windows is trying to access a path on, for instance, Drive P:/folder1/folder2/filename? However your normal drive lettering only goes up to H:/? You can get something similar with removal data storage disks.
I once ran across an impossible drive path issue that caused odd reactions in an Open/Close File dialog like you've mentioned. Think I had to re-install the drive, reset the dialog's path to C:/ and then remove the drive once again. This would have been on WinXP.
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