Model builder not able to create output folder using workspace environment value.

[Ginnie]

When I am creating a workspace variable with parameter it works great when I accept the default output feature class name but if I have determined my own output feature class name than the current workspace environment is not changing...

I've tried to do this through a workspace variable and via the properties tool in ArcCatalog and the same thing happens... I'm doing a lot of analysis and I need to repeat the tools by different areas and the only thing I can not get the model to do is reset the output variable..

(ie input is z clipped by a (determined with a parameter) with an output of z_clipped.shp ) I need to be able to put z_clipped.shp into output folder a (then folder b) then folder c).

[shitijmehta]

Please can you share your model or a snap shot to suggest a solution. From what I understand you want to create the output each time you run the tool in a new folder. Is this correct? Are you using ArcGIS for Desktop 10.1?