Sync left pane in Windows 7 Explorer with the opened folder
Under the "Folder and Search Options" accessible from the "Organize" menu, there is an option to "Automatically expand to current folder". I believe this is the setting you are looking for.
I found this option on Windows 7 Professional (just right click on an empty space on the left pane):
[Thanks to vkapartzianis]
Folder Options > General > Navigation pane
check the box Automatically expand to current folder