thank you both for your responses -- yes, the x 'cd c:\temp' works but then it requires someone including this prior to creating files in a place they shouldn't. That might be a temporary work around as an item in the autoexec, however the default behavior is what I'm trying to adjust. Also the issue here is that our EG runs on our PC clients and connects to SAS on the server, so this seems to be a server setting. The WORK and SASUSER directors are being created with no problems, and they're different from the default location where the x commands are executed.
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