File/Folder browsing on Tiger 10.4.11

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I just installed the latest software update. My mac is now on Tiger 10.4.11.

After installation, something changed. Before, whatever I was working on, let's say, photoshop, and I wanted to 'save as', the browsing window would take me automatically to the folder I was working from. Now, regardless of what it its, be it 'save', 'open', 'save as', 'place', 'save for web', etc. the window always opens on 'Home'.

I'm looking for an option to have the window open on the last folder I was in/working from, and can't seem to find it anywhere.

Help!
 
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If I remember correctly, older OXs had an option having to do with that. The IT guy here is more for the PC crowd, so I'm kinda lost since I stopped troubleshooting Macs a few years back...

Thanks for the suggestions, I will try them tomorrow. :)
 

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