It seems that when the editor is launched, it does not show Networked drives. However if you launch it “run as user” and put in the credentials of the exact same user who is currently logged in, it then shows network drives. However it does not show Home drives Env Var %homedrive%. Seems that its launching in an awkward user space, although in Task manager shows it runs in the proper logged in users name space.
We found a temporary fix for those who might be having a similar issue. We are copying the path from Windows and pasting it into the folder path in UE4 during new project creation. It pastes with the drive letter we are using here at the school for our content drives for students. Our instructors will be able to create in class projects and students can do the same on their computer log ins. Everything seems to be running okay. I hope this is something we can expect to be resolved in future patches. Great work on the engine thus far!!