SharePoint 2007 lacks a really important ECM feature which is to set metadata automatically depending on where you upload the document.
SharePoint 2010 has this feature built-in. Let’s say for instance that you have a document library with 2 folders:
and you want to assign metadata depending on which folder the document is uploaded.
In order to do that, you can go to the library settings and click on the Column default value settings link:
This will bring you a very nice screen that will allow you to configure default metadata depending on the location:
For instance, if we want to change the default value for priority if a document is uploaded to folder 1, we just have to click on Priority and fill the following screen: