I can't figure it out either. But did you notice if you use smart searching in a open or save dialog it works like you would expect. There are three buttons "Computer", a "home" button and also a button with the name of the current folder and it even remember which you last selected. Too bad command-F from the finder doesn't work this way... Maybe if someone could figure out which .plist file is setting the search in an open or save dialog box that might reveal some info.

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