Old version of document lost in project portal

I added a document using Team explorer to the \documents\development folder. Someone else modified that document offline and then emailed it back to me to put back in the system. I then drug the file back to the folder in team explorer and it asked me if I wanted to replace it. Since I have the setting "Create a version each time you edit a file in this document library" set to yes, I assumed that adding the file would just cut a new version...but it seems I was wrong. Is there any way to set the project portal to always version the files even if it is replaced in stead of edited?

[605 byte] By [JasonD.Camp] at [2008-2-13]