So if I understand you correctly:

If I have a folder in the root named /services that contains 2 pages:
1. named index.htm
2. named /policies.htm

A link from 1 to 2 would not be: /services/policies.htm

But rather: ../policies.htm

And a link from 2 to 1 would not be: /services/

but rather: ../services/

Is that right?