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When you add a PDF from another directory, Zotero copies it into its own internal structure, which is confusing and involves folders with random letter names.
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I am guessing this has something to do with Zotero running as a FireFox plug-in. You can tell Zotero where the file is, but you would have to do this for every file in the database. If you sync your database to a second computer, it shows the links as still being there, but if you try to click on a file to open it within Zotero you get an error message saying Zotero cannot find it. I love being able to sync my Zotero database between my personal Mac and school PC, but the syncing breaks the file links. Otherwise, they would have it, wouldn't they?
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This again makes me think that the way Zotero is written, relative links are not possible. I should also point out that on Zotero's website, there are numerous posts from users requesting relative links, but with absolutely no reply from Zotero. Update: I edited the following paragraph to clear up some confusion pointed out in a posted comment.
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There is one problem with Zotero, however, that I just cannot move past: its inability to use relative links for linking to files. If you know the academic me, you know I love, and regularly tout, using Zotero to manage my ever-growing bibliography.
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