Okay... moving my play list and the altlogo.png from my \\downloads folder where they have sat and worked for many generations... to C:\Documents and Settings\Ralph\Application Data\Marine Aquarium 3.. and both the music and the alt logo work... SORT OF...
A multi monitor issue.. when in full screen the alt logo does not work on the second screen, strangely the portion that scrolls onto the main screen does change. When in a window the alt logo works just fine.
Still somewhat confused though about the placement of files... through this whole testing process I have kept the updated zip files in my download folder.. unzipped there and over write the existing MA3Beta.scr file.. Then a shortcut on my desktop to this file starts the SS.. Simple and easy.
I guess that I would expect the MA3Beta.scr file to be copied to the new folder as well and possible an offer of placing a short cut on the desktop. If the MA3Beta.scr was zipped with a path would it then not unzip to that location? Keeping it all together seems a logical final goal...
My choice for ultimate destination of all these files would have been in the program folder.. again to keep it all together in a place "most" software goes.. and where one starts looking for software installed

Programs go in C:\Program Files\.
Data goes in C:\Documents and Settings\
Username\Application Data\
ApplicationName. This is Windows 2000/XP
/Vista/WM7 going back 9 years now. Unfortunately programs have ended up putting things in wrong folders, Program Files, or worse the Registry.
The Registry is a rat's nest of overlapping nightmare that I'm surprised anyone can sort out.
I would rather have all Settings and Data stored in "Documents and Settings" (go figure?!) but it was not meant to be.