Absolute vs. Relative Paths?

I load up CS3 version of DW.
Using; Links relative to: "Document" NOT "Site root"

Steps to reproduce the problem / fault:
Open a page add a form, file field and save it.
Create an "uploads" folder for my images, make it writable.
I open DMXzone Pure upload(any one of them) and select "Browse..." to select the folder
I get this "../../sites/php_upload/uploads"
I have to physically change it to this "uploads"

So where is the problem / fault:; Dreamweaver? or DMXzone?
http://www.communitymx.com/content/article.cfm?cid=230ad

Here is an idea;
http://www.decloak.com/Products/Dreamweaver/NestedTemplates/Support/URL_Path_Options.aspx

How to fix this?
What do I have to change? A file, a set of files, A setting, what?

Cheers