There are two different things going on here.
1) Whether an imported document is linked or stored in UR. By default (with the option you mentioned being unchecked), copy/paste or drag/drop from Explorer into UR will link. The indicators of a linked document are:
a) [Stored] not displayed following item title in the Item Detail spane
b) No Document Size attribute in Item Attributes Pane
c) Store Contents item on the Item toolbar/menu not depressed
http://www.kinook.com/UltraRecall/Ma...recontents.htm
2) Whether the imported document is displayed within UR. This is configured via several options at Tools | Options | Documents/Editor/Browser.
http://www.kinook.com/UltraRecall/Ma...etailspane.htm