Word 2007 saves your files in the default location: “C:\Documents and Settings\user name\My Documents”. To change this save location, follow the below procedure:

1.   Click the Office button.

2.   From the drop-down list, click the Word Options button. The Word Options dialog box appears.

3.   From the category list on the left, click Save.

4.   From the pane on the right had side, under the section Save Documents, the field Default File Location shows the current save location.

5.   Click the adjacent Browse button to specify a new save location.

6.   Click OK. See below image.