Managing External References - AutoCAD 2011 and AutoCAD LT 2011: No Experience Required - page 673

Note the difference between the Found In and Saved Path listed at the
bottom of the dialog box. All of the different Path Types are explained in
detail in the “Making Sense of the Different Path Types” sidebar.
M a k I n g s e n s e o F t h e d I F F e r e n t p a t h t y p e s
The default path type for external references is Full Path. When the Full Path
option is selected, the referenced file is located at the absolute path that
includes the drive, folder, and subfolder where the file is stored. Using this
path type requires other users of the drawing to have the same file structure.
This means that moving a referenced drawing from its original location will
break the reference, and it will no longer display in your drawing unless
you redefine the path.
Your second option is Relative Path. When this option is selected, AutoCAD
will store a path relative to the host drawing. A major advantage of this
method is seen when both drawings are stored on the same drive letter
( C:\ ). Because both drawings are on the same drive, the relative path would
not include the drive letter as the Full Path would. This means you can move
your project to another drive or burn it to CD/DVD, and the external refer-
ences will still work, provided the directory structure remains unchanged.
Since both the host drawing and reference drawing must be located in the
same folder, the final option is hardly used. The No Path option does as its
name implies, and stores only the drawing name. Consequently, AutoCAD will
search only the same directory as the host file to resolve the reference.
Among the three choices available to you, the Relative Path option is the
preferred choice. Should you choose to use the Relative Path option, make
sure to save your drawing before you create the external reference. Because
the reference path is based on where the two files are saved, the Relative
Path option requires the drawing be saved prior to choosing it.
3. Click OK. You return to your drawing, and the site plan drawing appears
and moves with the base point attached to the crosshair cursor.
4. Click at the top-left corner of the rear deck post to be the insertion
point, and then zoom to the drawing's extents.
The xref drawing is attached and appears in the site plan (see
Figure 13.15).