Tracking Hard Disk Directories

I'm using XP (all updates current) and Firefox 11.0.
Firefox download history is turned off.

I've been noticing for awhile that if I save a file to disk that the downloader knows
which directory to put in -- even if that directory has not been used for some time.
For example, downloaded the MVPS host file today. Hadn't downloaded since around
January 2012. Yet was taken right to the directory where I had previously saved the
Jan 2012 file.

Anyone else noticing this and is it a function of the OS or Firefox.

I'm unsure of this but most likely when download history is turned off, it may still maintain the path to download the files, but may not maintain a list of filenames.

B61Nuke:
Thanks for responding. My thoughts as well. Maybe someone know for sure.