Attachments Folder in Thunderbird 1.0.2

Does anyone know what setting the attachments folder from the options
menu does? If one receives attachments they are not automatically stored
there. In addition it doesn't seem to make any difference whether the
"save all attachments to this folder" or "ask me where to save every
attachment" is checked - you still have to specify a directory after
right-clicking in the attachments display window in the inbox. Thanks
for your time and comment.