Scook and Rebel007, thanks for your feedback. You've confirmed what I thought was the case.
There is another complication that can occur doing things with a common audio folder. That is, an audio file can be shared by two or more projects. I've got a few examples of that.
My folder setup goes back to how ProAudio9 did things. Actually some of the stuff I have came from Opcode's Vision on a Mac! I could clean it all up with per-project folders but that would be quite a job. And if I need to backup a specific project or gather a project all together, I can do the SaveAs... operation when needed.
Again, thanks for your feedback!
--Larry