Thanks for the tip about using forward slashes. It keeps the path as specified. However two more questions:

1) Does it matter where I create the folder? More specifically does it "have to be " a sub-folder of the "forum" folder?

2) Either way (I've tried it both ways) is there another setting that needs to be enabled because my users do not see this option even though everything appears to be set correctly now?

Thanks,
Brendan