When you open a doc in office 2003 there is no favorites anymore

[Darren]

In office 2000 when you went to open a document you had the option to
open/add to your favorites. In office 2003 there no longer appears to be
this option.

 

[Suzanne S. Barnhill]

You can add the Favorites folder back to the Places Bar if you choose. See
http://www.gmayor.com/customize_the_word_places_bar.htm