OK, Paul, it was a simple bug.  Try this UI assembly instead.  I am assuming that you are already running on the 1.6.5 beta, so just add this assembly to you GAC and the c:\program Files\Common Files\MicroFOur\StrataFrame folder and you should be good to go.  I did reproduce the error and once I made this change the BrowseDialog worked as it should in this scenario.