Workspace Templates not Replacing Z:\Root

I have created a workspace template with the local path set to something like Z:\ROOT\TFSProject.  I expected that, when someone tries to create a new workspace based off of the template, it would use what they entered in the local path textbox as a replacement for Z:\ROOT.  It would then create the TFSProject folder as well.  Unfortunately, when I attempt to get latest while connected to the workspace created from the template, it complains about not being able to find Z:\ROOT\TFSProject.  Why wasn't Z:\ROOT replaced by the local path?  I tried z:\{root}\TFSProject too.

As an additional question, is there a way to force VS to 'get latest' when creating the workspace from a template?  Can it also be instructed to open the solution once the files have been retrieved?

I am using VS2012 SP1 on Windows 7.