You can smaller the size of the displayed Icons in the places bar
(which appears when you want to open or save a document)

Note:This applies to all Office Versions back to Office 2000.I tested it
on Office 2007.Works fine.

This gives you the possibility to place more icons/locations in the places bar
See : - Places Bar Custom Locations In Office - to that.
To do so click your way through :

- HKEY_CURRENT_USER\Software\Microsoft\Office
\VERSION\Common\OpenFind\Places\

Note:VERSION = 9.0 (Office 2000) , 10.0 (Office XP) ,
11.0 (Office 2003) ,12.0 (Office 2007)

Locate / create in the right pane the entry :
(as REG_DWORD [DWord Value])

ItemSize

Doubleclick this entry and set it's value to : 0 (smallest size)

Close registry and restart Office !!