William,
Here is the issue. LabVIEW is actually using the Windows File Dialog for this task, so this is actually a Windows thing.
If you are choosing only an existing path, then you can create a constant on the select mode (2) input to this function. If you choose existing path, then the button will say Open as you would expect. If you choose new or existing path, then the button will say Save originally because a user can type something and save the typed value as a new directory. If the user selects a directory, then the button changes to say Open.
Randy Hoskin
Applications Engineer
National Instruments
http://www.ni.com/ask