No it doesn't - and the path shown for the uploaded file is \cms\files\filename. The upload path I set in the editor was \cms\files\ and I noticed that the folder "files" is not world writeable and I am denied the ability to change the permissions (don't now if that mean anything - just thought I would mention it). I used the content_insert page to edit the instance of the HTMLeditor.
One thing that I did notice is that the HTMLeditor put a folder of the same name under my website root and not the \cms\ folder where the cms is located so basically there are two HTMLeditor folders - one under the root and one under the \cms\ folder, which is the one that came with the solution. It would be nice to specify where these files should go. I used the edit button under properties to edit the instance of HTML editor
Been working on this for awhile - I deleted BOTH folders locally and remotely - and copied the HTMLeditor folder from my cms backup to the local cms directory - when I tried to edit the HTMLeditor instance, the new HTMLeditor folder was re-created in the root......this is in addition to the one in the cms directory. Then the create content page went blank - When I click on the insert content tab, all I got was a blank page - so I copied the contents_insert page from backup and did not edit the editor instance and just uploaded it to the remote site and that restored my insert new content function. So now I am wondering if I should delete the HTMLeditor folder from the cms directory and/or move the one in the web root to the cms folder?