Well, even worse, I downgraded back to 6.34. It is now doing the same thing, only downloading everything to c:\newsbin download instead of g:\newsbin download like it is set in options. Nothing is overridden in the group properties. Even if I implicitly override the group settings, when I start newsbin up it just saves to c:\newsbin download. Help!!
Addition: I have temporarily gotten around this by creating a directory symbolic link between the two directories, but for other folders where I had changed the download folders these are all going to directories on drive C instead of G where they should be