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Before OS 2.0, a problem reared its ugly head.  Many programs needed a
logical assignment to find related data and code files.  The problem with
this is that assignment lists got so long and unreadable that they started
losing their usefullness as a tool.  Getting rid of software required a few
hoops (you cannot delete an assigned directory) and relocating programs was
an affair that required trips to the Startup-Sequence and tracking down
other scripts and configuration files with assignment names.

The answer to this was to create a dynamic assignment called "PROGDIR:"
that is relative to the program calling it.  Any program can now call
"PROGDIR:" and find the directory it was launched from.  Related files can
be stored in a predefined tree that no longer was "fixed" on the drive.  At
this point, it became possible to simply drag a drawer from anywhere to
anywhere and no MS-DOS like config and startup file editing was required. 
Getting programmers to use this feature is the new problem.

The next time you are in a program and you have the file requester open,
type in "PROGDIR:" as the path and see what happens.  If all goes well,
you'll be looking at the directory you ran the program from.