The Directories page specifies where your source files are located. You may have more than one directory which contains your source files, so you can specify more than one directory in the listbox. The working directory is the location where any files generated by the project are stored. For example, if you compile for use with the Debugger or Browser, special files are created and stored in this working directory. The working directory must be selected from one of the defined source directories, for the target file will be stored there.