How to: Create a new directory without quitting Word.
Solution:
Select the 'File' menu and select 'Save as', then create a new folder (directory).
NOTE: In Office 7.0, 'directories' are called 'folders'.
1) Select the 'File' menu, and select 'Save As...'. (The Save As dialog box appears.)
2) Click 'Create New Folder'. (The New Folder dialog box appears.)
3) Type the name of the new folder in the 'Name' box.
4) Click 'OK'. (The Save As dialog box reappears.)
5) Select the new folder.
6) Click 'Save' tosave the current document in the new folder.