If a directory does not exist you can use the create button to create the name. The directory is created within the directory you are currently browsing.
By default
when you first open the file browser the current directory will always
be your specified work directory.
When you have browsed to the directory you wish to select hit Ok to
copy that directory name to the entry box you are working with, hitting cancel
leaves its original value.
When browsing a directory for project files, double-clicking on a specific project file returns this and also sets the directory.
The file browser window