diff --git a/RainmeterStudio.Core/RainmeterStudio.Core.csproj b/RainmeterStudio.Core/RainmeterStudio.Core.csproj
index b57220d8..aa876854 100644
--- a/RainmeterStudio.Core/RainmeterStudio.Core.csproj
+++ b/RainmeterStudio.Core/RainmeterStudio.Core.csproj
@@ -67,6 +67,7 @@
     <Compile Include="Utils\InputHelper.cs" />
     <Compile Include="Utils\LinqExtension.cs" />
     <Compile Include="Utils\BitmapHelper.cs" />
+    <Compile Include="Utils\PathHelper.cs" />
     <Compile Include="Utils\TreeExtensions.cs" />
   </ItemGroup>
   <Import Project="$(MSBuildToolsPath)\Microsoft.CSharp.targets" />
diff --git a/RainmeterStudio.Core/Utils/LinqExtension.cs b/RainmeterStudio.Core/Utils/LinqExtension.cs
index b0dda7bb..5538c31d 100644
--- a/RainmeterStudio.Core/Utils/LinqExtension.cs
+++ b/RainmeterStudio.Core/Utils/LinqExtension.cs
@@ -21,5 +21,19 @@ namespace RainmeterStudio.Core.Utils
             foreach (var obj in container)
                 action(obj);
         }
+
+        /// <summary>
+        /// Appends an item at the end of the container
+        /// </summary>
+        /// <typeparam name="T">Enumerable type</typeparam>
+        /// <param name="container">Container</param>
+        /// <param name="item">Item to append</param>
+        public static IEnumerable<T> Append<T> (this IEnumerable<T> container, T item)
+        {
+            foreach (var i in container)
+                yield return i;
+
+            yield return item;
+        }
     }
 }
diff --git a/RainmeterStudio.Core/Utils/PathHelper.cs b/RainmeterStudio.Core/Utils/PathHelper.cs
new file mode 100644
index 00000000..0323365a
--- /dev/null
+++ b/RainmeterStudio.Core/Utils/PathHelper.cs
@@ -0,0 +1,25 @@
+using System;
+using System.Collections.Generic;
+using System.IO;
+using System.Linq;
+using System.Text;
+
+namespace RainmeterStudio.Core.Utils
+{
+    public static class PathHelper
+    {
+        /// <summary>
+        /// Validates a path
+        /// </summary>
+        /// <param name="path">The path</param>
+        /// <returns>True if the path is valid</returns>
+        public static bool IsPathValid(string path)
+        {
+            // Check for invalid characters
+            if (Path.GetInvalidPathChars().Intersect(path).Any())
+                return false;
+
+            return true;
+        }
+    }
+}
diff --git a/RainmeterStudio/Properties/Settings.Designer.cs b/RainmeterStudio/Properties/Settings.Designer.cs
index d8922d43..8586ff67 100644
--- a/RainmeterStudio/Properties/Settings.Designer.cs
+++ b/RainmeterStudio/Properties/Settings.Designer.cs
@@ -147,5 +147,41 @@ namespace RainmeterStudio.Properties {
                 this["MainWindow_Top"] = value;
             }
         }
+        
+        [global::System.Configuration.UserScopedSettingAttribute()]
+        [global::System.Diagnostics.DebuggerNonUserCodeAttribute()]
+        [global::System.Configuration.DefaultSettingValueAttribute("")]
+        public string CreateProjectDialog_RecentLocations {
+            get {
+                return ((string)(this["CreateProjectDialog_RecentLocations"]));
+            }
+            set {
+                this["CreateProjectDialog_RecentLocations"] = value;
+            }
+        }
+        
+        [global::System.Configuration.UserScopedSettingAttribute()]
+        [global::System.Diagnostics.DebuggerNonUserCodeAttribute()]
+        [global::System.Configuration.DefaultSettingValueAttribute("")]
+        public string CreateProjectDialog_SavedLocation {
+            get {
+                return ((string)(this["CreateProjectDialog_SavedLocation"]));
+            }
+            set {
+                this["CreateProjectDialog_SavedLocation"] = value;
+            }
+        }
+        
+        [global::System.Configuration.UserScopedSettingAttribute()]
+        [global::System.Diagnostics.DebuggerNonUserCodeAttribute()]
+        [global::System.Configuration.DefaultSettingValueAttribute("True")]
+        public bool CreateProjectDialog_CreateDirectoryCheckbox {
+            get {
+                return ((bool)(this["CreateProjectDialog_CreateDirectoryCheckbox"]));
+            }
+            set {
+                this["CreateProjectDialog_CreateDirectoryCheckbox"] = value;
+            }
+        }
     }
 }
diff --git a/RainmeterStudio/Properties/Settings.settings b/RainmeterStudio/Properties/Settings.settings
index 2e4c6840..af3b6bf2 100644
--- a/RainmeterStudio/Properties/Settings.settings
+++ b/RainmeterStudio/Properties/Settings.settings
@@ -32,5 +32,14 @@
     <Setting Name="MainWindow_Top" Type="System.Double" Scope="User">
       <Value Profile="(Default)">10</Value>
     </Setting>
+    <Setting Name="CreateProjectDialog_RecentLocations" Type="System.String" Scope="User">
+      <Value Profile="(Default)" />
+    </Setting>
+    <Setting Name="CreateProjectDialog_SavedLocation" Type="System.String" Scope="User">
+      <Value Profile="(Default)" />
+    </Setting>
+    <Setting Name="CreateProjectDialog_CreateDirectoryCheckbox" Type="System.Boolean" Scope="User">
+      <Value Profile="(Default)">True</Value>
+    </Setting>
   </Settings>
 </SettingsFile>
\ No newline at end of file
diff --git a/RainmeterStudio/UI/Controller/ProjectController.cs b/RainmeterStudio/UI/Controller/ProjectController.cs
index 6b2ce95e..d1577fde 100644
--- a/RainmeterStudio/UI/Controller/ProjectController.cs
+++ b/RainmeterStudio/UI/Controller/ProjectController.cs
@@ -107,8 +107,7 @@ namespace RainmeterStudio.UI.Controller
             // Create dialog
             var dialog = new CreateProjectDialog(this);
             dialog.Owner = OwnerWindow;
-            dialog.SelectedLocation = Path.Combine(Environment.GetFolderPath(Environment.SpecialFolder.MyDocuments), "Rainmeter Studio Projects");
-
+            
             if (name != null) 
                 dialog.Name = name;
             
diff --git a/RainmeterStudio/UI/Dialogs/CreateProjectDialog.xaml b/RainmeterStudio/UI/Dialogs/CreateProjectDialog.xaml
index abe8c19d..27efe9ff 100644
--- a/RainmeterStudio/UI/Dialogs/CreateProjectDialog.xaml
+++ b/RainmeterStudio/UI/Dialogs/CreateProjectDialog.xaml
@@ -2,9 +2,11 @@
         xmlns="http://schemas.microsoft.com/winfx/2006/xaml/presentation"
         xmlns:x="http://schemas.microsoft.com/winfx/2006/xaml"
         xmlns:r="clr-namespace:RainmeterStudio.Resources"
-        Title="{x:Static r:Strings.CreateProjectDialog_Title}" Height="320" Width="480"
+        xmlns:p="clr-namespace:RainmeterStudio.Properties"
+        Title="{x:Static r:Strings.CreateProjectDialog_Title}" Width="600" Height="400" 
         WindowStartupLocation="CenterOwner"
-        WindowStyle="ToolWindow" ShowInTaskbar="False">
+        WindowStyle="ToolWindow" ShowInTaskbar="False"
+        Closed="Window_Closed">
 
     <Grid Background="WhiteSmoke">
         <Grid.RowDefinitions>
@@ -53,8 +55,10 @@
             
             <!-- Location -->
             <TextBlock Grid.Row="1" Text="{x:Static r:Strings.CreateProjectDialog_Location}" />
+            
             <ComboBox Name="textLocation" IsEditable="True"
                       Grid.Row="1" Grid.Column="1" />
+            
             <Button Grid.Row="1" Grid.Column="2" Content="{x:Static r:Strings.Dialog_Browse}"/>
             <CheckBox Name="checkLocationDefault" 
                       Grid.Row="1" Grid.Column="3" 
@@ -63,14 +67,13 @@
 
             <!-- Path -->
             <TextBlock Grid.Row="2" Text="{x:Static r:Strings.CreateProjectDialog_Path}"/>
-            <ComboBox Name="textPath" 
-                      IsEditable="True"
-                     Grid.Row="2" Grid.Column="1" />
+            <TextBox Name="textPath" Grid.Row="2" Grid.Column="1" />
             <Button Grid.Row="2" Grid.Column="2" Content="{x:Static r:Strings.Dialog_Browse}" />
+            
             <CheckBox Name="checkCreateDirectory" 
                       Grid.Row="2" Grid.Column="3" 
                       Content="{x:Static r:Strings.CreateProjectDialog_PathCreateFolder}"
-                      IsChecked="True"
+                      IsChecked="{Binding Source={x:Static p:Settings.Default}, Path=CreateProjectDialog_CreateDirectoryCheckbox, Mode=TwoWay}"
                       Checked="checkCreateDirectory_CheckChanged"
                       Unchecked="checkCreateDirectory_CheckChanged"
                       VerticalAlignment="Center"/>
@@ -79,8 +82,8 @@
 
         <StackPanel Grid.Row="2" Orientation="Horizontal"
                     HorizontalAlignment="Right">
-            <Button Command="{Binding CreateCommand}" IsDefault="True" Content="{x:Static r:Strings.Dialog_Create}" />
-            <Button Command="{Binding CancelCommand}" IsCancel="True" Content="{x:Static r:Strings.Dialog_Cancel}" />
+            <Button Name="buttonCreate" IsDefault="True" Content="{x:Static r:Strings.Dialog_Create}" Click="buttonCreate_Click"/>
+            <Button Name="buttonCancel" IsCancel="True" Content="{x:Static r:Strings.Dialog_Cancel}" Click="buttonCancel_Click" />
         </StackPanel>
 
     </Grid>
diff --git a/RainmeterStudio/UI/Dialogs/CreateProjectDialog.xaml.cs b/RainmeterStudio/UI/Dialogs/CreateProjectDialog.xaml.cs
index 0d212ea7..e358c4bf 100644
--- a/RainmeterStudio/UI/Dialogs/CreateProjectDialog.xaml.cs
+++ b/RainmeterStudio/UI/Dialogs/CreateProjectDialog.xaml.cs
@@ -14,6 +14,8 @@ using System.Windows.Shapes;
 using RainmeterStudio.Business;
 using RainmeterStudio.Core.Documents;
 using RainmeterStudio.Core.Model;
+using RainmeterStudio.Core.Utils;
+using RainmeterStudio.Properties;
 using RainmeterStudio.UI.Controller;
 
 namespace RainmeterStudio.UI.Dialogs
@@ -23,34 +25,6 @@ namespace RainmeterStudio.UI.Dialogs
     /// </summary>
     public partial class CreateProjectDialog : Window
     {
-        #region Commands
-
-        private Command _createCommand;
-        public Command CreateCommand
-        {
-            get
-            {
-                if (_createCommand == null)
-                    _createCommand = new Command("CreateCommand", Create, Validate);
-
-                return _createCommand;
-            }
-        }
-
-        private Command _cancelCommand;
-        public Command CancelCommand
-        {
-            get
-            {
-                if (_cancelCommand == null)
-                    _cancelCommand = new Command("CancelCommand", Cancel);
-
-                return _cancelCommand;
-            }
-        }
-
-        #endregion
-
         #region Properties
 
         /// <summary>
@@ -120,45 +94,62 @@ namespace RainmeterStudio.UI.Dialogs
 
         private bool _pathUserSet = false;
         private bool _ignoreNextChange = false;
+        private ProjectController _projectController;
 
         #endregion
 
+        /// <summary>
+        /// Initializes the create project dialog
+        /// </summary>
+        /// <param name="projectController">Project controller</param>
         public CreateProjectDialog(ProjectController projectController)
         {
             InitializeComponent();
 
+            _projectController = projectController;
+
             // Add event handlers
             textLocation.AddHandler(TextBoxBase.TextChangedEvent, new TextChangedEventHandler(textLocation_TextChanged));
-            textPath.AddHandler(TextBoxBase.TextChangedEvent, new TextChangedEventHandler(textPath_TextChanged));
 
-            // Set data context
-            DataContext = this;
-
-            // Populate templates
+            // Populate controls
             listTemplates.ItemsSource = projectController.ProjectTemplates.OrderBy(x => x.DisplayText);
 
+            textLocation.ItemsSource = GetRecentLocations().OrderBy(x => x);
+
+            textLocation.Text = GetLocation();
+
+            Validate();
+
             // Focus on name textbox
             textName.Focus();
         }
 
-        private void Create()
+        private string GetLocation()
         {
-            DialogResult = true;
-            Close();
+            // Get setting
+            string location = Settings.Default.CreateProjectDialog_SavedLocation;
+
+            // No location provided, use default
+            if (String.IsNullOrEmpty(location))
+                return System.IO.Path.Combine(Environment.GetFolderPath(Environment.SpecialFolder.MyDocuments), "Rainmeter Studio Projects");
+
+            return location;
         }
 
-        private void Cancel()
+        private IEnumerable<string> GetRecentLocations()
         {
-            DialogResult = false;
-            Close();
+            return Settings.Default.CreateProjectDialog_RecentLocations
+                .Split(new[] { '|' }, StringSplitOptions.RemoveEmptyEntries);
         }
 
-        private bool Validate()
+        private void Validate()
         {
             bool res = true;
+            res &= (listTemplates.SelectedItem != null); 
             res &= !String.IsNullOrWhiteSpace(textPath.Text);
-            res &= (listTemplates.SelectedItem != null);
-            return res;
+            res &= PathHelper.IsPathValid(textPath.Text);
+            
+            buttonCreate.IsEnabled = res;
         }
 
         private void UpdatePath()
@@ -206,7 +197,15 @@ namespace RainmeterStudio.UI.Dialogs
             else
             {
                 _pathUserSet = true;
+
+                try
+                {
+                    textLocation.Text = System.IO.Path.GetDirectoryName(textPath.Text);
+                }
+                catch { }
             }
+
+            Validate();
         }
 
         private void checkCreateDirectory_CheckChanged(object sender, RoutedEventArgs e)
@@ -216,6 +215,44 @@ namespace RainmeterStudio.UI.Dialogs
 
         private void listTemplates_SelectionChanged(object sender, SelectionChangedEventArgs e)
         {
+            Validate();
+        }
+
+        private void buttonCreate_Click(object sender, RoutedEventArgs e)
+        {
+            DialogResult = true;
+            Close();
+        }
+
+        private void buttonCancel_Click(object sender, RoutedEventArgs e)
+        {
+            DialogResult = false;
+            Close();
+        }
+
+        private void Window_Closed(object sender, EventArgs e)
+        {
+            // Save settings
+            if (DialogResult.HasValue && DialogResult.Value)
+            {
+                // Save recent locations
+                IEnumerable<string> recentLocations = GetRecentLocations();
+                if (!recentLocations.Contains(SelectedLocation))
+                {
+                    if (recentLocations.Count() > 5)
+                        recentLocations = recentLocations.Skip(1);
+
+                    recentLocations = recentLocations.Append(SelectedLocation);
+                }
+
+                Settings.Default.CreateProjectDialog_RecentLocations = recentLocations.Aggregate((first, second) => first + "|" + second);
+
+                // Save location
+                if (checkLocationDefault.IsChecked.HasValue && checkLocationDefault.IsChecked.Value)
+                {
+                    Settings.Default.CreateProjectDialog_SavedLocation = SelectedLocation;
+                }
+            }
         }
     }
 }
diff --git a/RainmeterStudio/app.config b/RainmeterStudio/app.config
index 9842eb68..7de0c84f 100644
--- a/RainmeterStudio/app.config
+++ b/RainmeterStudio/app.config
@@ -38,6 +38,15 @@
             <setting name="MainWindow_Top" serializeAs="String">
                 <value>10</value>
             </setting>
+            <setting name="CreateProjectDialog_RecentLocations" serializeAs="String">
+                <value />
+            </setting>
+            <setting name="CreateProjectDialog_SavedLocation" serializeAs="String">
+                <value />
+            </setting>
+            <setting name="CreateProjectDialog_CreateDirectoryCheckbox" serializeAs="String">
+                <value>True</value>
+            </setting>
         </RainmeterStudio.Properties.Settings>
     </userSettings>
 </configuration>