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When I was using Microsoft Office 2007 then I have never noticed such issue. But since I have upgraded my Office to 2010, I see that are no drives listed in the Look In Section. When you open a new document then on the Open dialog box when you click on the Look In Section then Office 2007 used to show the network drives but Office 2010 didn't detected the same? Is this a new feature in the new version or there is some mistake done by it?
Even I have noticed the same thing on my MS Office 2010 as I used to open my network drive from the Look In list but since I have installed the new version, There is no such option for me. Microsoft might have improved the features in the new version of an Office but it seems like they have made many mistakes as well while improving it. Such features were useful to many office users which seems to be removed in the new version. I guess there is nothing you can do in order to solve this issue. It sounds bad but you ave to live with this changes if you want to use other new feature of this microsoft software.
Yes, This looks like bug in the MS Office 2010 as many people are crying after removing such feature in the new version. I have googled up many times but haven't found the solution for this issue. Even microsoft may not have noticed any such issue or they are just ignoring this issue. I suggest you to check that can you open the My Computer by double clicking on it or it not showing any other local drives too?
If I am not wrong there must be some settings that needs to be enabled in order to show the network drive on the software which you have installed on your windows machine. I suggest you to go to the settings of the application of an Office 2010 where you have to select for the network drive as a trusted location to access from that particular application. I have seen that such issues comes when you have some restrictions set on the program due to which such locations gets skipped while using those application. So you better check the settings first of all on the MS Word 2010.
I have solved this problem! As Mr. Blazej said that microsoft must have given some option which can solve this issue, It is true. I have seen the same problem on my MS Word 2010 when I was willing to upload some documents from the network drive. Actually you have to open the Word 2010 and then go to its Options. Here you would be finding the Trust Center where you have to tweak up some Settings. Once you have entered into the Settings then you have to check allow trusted locations to my network. Now check that your network drive is displayed in the Look In section or not.