Steven,
Try this on for size.
Although PROJECTNAME is an attempt to resolve xrefs, it takes some time by the user to set up their system, and their drawings to use it. The idea is to make things easier and faster for them. In my office I have 100 users and over 350 projects, I don't want to have to set up each system for this method.
If you are simply looking for a way to resolve xrefs faster, including speeding up the xref attach dialog box, here are two possible solutions that have worked great for me, However a limitation that was not to hard to overcome is that you have store all the xrefs for a Project in the same folder.
Note there are two standard search paths that are not listed in the options dialog box, the first one is the folder that contains the current drawing, the second is the folder from which AutoCAD was started, these are searched before the listed search paths in the Options dialog box.
1. Create you a new Shortcut Icon that runs the acad.exe file and Name it your Project Name
Right Click on the new Icon choose properties and set the "Start In" line equal to the location of the xrefs.
When you use this icon to start AutoCAD the "xref" folder is now included in AutoCAD's standard search paths. Now this will do two things for you. Resolve Xrefs stored in that folder without the need for a path, and also, when you use the Open File dialog, or others such as XREF attach, you will automatically be in that folder.
2. Create a bat file that you will use to start AutoCAD, inside this bat file set to the drive that the project is stored on, then use the cd command to change directory to the "xref" folder. Then run the acad.exe This gives you the exact same result as in step one, starting AutoCAD from the "xref" folder. The Syntax would be like this.
P: (change to Project drive)
cd\Project\XrefFolder (change to Xref folder)
C:\2005\acad.exe (Run acad.exe from install path)
Note - If you use spaces in any folder names you must "quote" the entire path. I.E. "C:\Program Files\Acad 2005\acad.exe"
Now that you have created this bat file create a shortcut that runs it, instead of acad.exe.
What I do in my office is, I have a network folder full of bat files, then I have another folder full of shortcut's to each bat file. At the users desk I created a Program group on their Start menu that gets them to the shortcuts to launch AutoCAD for any given Project. If I need to move a project or rework it some how I only have to make one edit, and all the users see the change.
Now this seems like a lot of work, especially if you have a lot of existing projects, however once you get the system down and start making these shortcuts when you create a new project, you will have a well oiled machine. This works well in our office because we store all "model" (xrefs) in single folder for each project, then all "sheet" files are stored in discipline folders directly under the xref folder.
Another note to consider, AutoCAD ships with a variable called REMEMBERFOLDERS set to ON, in order for the "Start In" folder to take over you must Turn this OFF.
I hope this helps you out, It may seem like a lot, but I can't live without it, now.
Darren S