Options Dialog - Path Management
The Options dialog, Path Management option allows you to set the file paths referenced by MDL entities as a relative or absolute path.

Figure 1. Options dialog - Path Management
Convert all to absolute | Converts all file paths (specified for curves, graphics, flexbody definitions, etc.) to an absolute path. |
Convert all to relative | Converts all file paths in the model as a relative path with respect to the current model location. The model file should have been saved prior to this operation. |