One thing for Windows Vista users to be aware of: If you try to select the Use my local drafts folder check box, you might see this error message.
You can click OK and still check out the file. But it won't be checked out to your SharePoint Drafts folder. This means you don't get the benefit of editing the file offline. Instead, you'd need to have a constant Internet connection to the library in order to edit the file.
If you trust the library you are working with (for example, if it's a library at your company and you trust the files that are stored there), you can add the SharePoint site URL to your list of trusted sites in Internet Explorer. Doing so will eliminate this error message for the site. Information on how to do this is available in the Quick Reference Card at the end of this course.