1. Rename or unregister the fmearcgisext.dll (usually in C:\Program Files\ArcGIS\Data Interoperability Extension) and rename it to something else. (This is the dll associated with the Data Interoperability Extension, so using this workaorund will disable that extention).2. C# workaround (setting the StartingLocation propery on the GxDialog) seems to work as a workaround. This only works in C#: private void btnOpenGxDialog_Click(object sender, System.EventArgs e) { ESRI.ArcGIS.CatalogUI.IGxDialog pGxDialog; ESRI.ArcGIS.Catalog.IEnumGxObject openedObj; ESRI.ArcGIS.Catalog.IGxObject pGxObject; string pStartLoc; pStartLoc = @"C:\test_data\shapefiles"; object pGxPath; pGxPath = pStartLoc; pGxDialog = new ESRI.ArcGIS.CatalogUI.GxDialogClass(); pGxDialog.ObjectFilter = new ESRI.ArcGIS.Catalog.GxFilterFeatureClassesClass(); pGxDialog.AllowMultiSelect = false; pGxDialog.RememberLocation = true; pGxDialog.set_StartingLocation(ref pGxPath); pGxDialog.DoModalOpen (0, out openedObj); pGxObject = openedObj.Next(); }