Xref Path Types

When you insert an xref, there are three options for the path type:

1. No path: When you attach an xref with no path, AutoCAD first looks for the xref in the folder of the host drawing.
2. Full path: When you attach an xref with a full path, the xref's precise location is saved to the host drawing. This option is the most precise but the least flexible. If you move a project folder, AutoCAD cannot resolve any xrefs that are attached with a full path.
3. Relative path: When you attach an xref with a relative path, the xref's location relative to the host drawing is saved. This option is the most flexible. If you move a project folder, AutoCAD can resolve xrefs attached with a relative path, as long as the xref's location relative to the host drawing has not changed.

Many people (me included) recommend using "relative path" for your xrefs, since it's the most flexible option.