As mentioned, I have the exact same problem.
Am using this path:
C:\Users\Public\Music\Sample Music\Sleep Away.mp3
(The "Sleep Away" mp3 is a sample with W7 64)
I tried it by taking out the space between "Sleep" and "Away" and also tried it both ways in the "C:\Users\Public\Music\" folder.
Clean install of W7, I'm using the "demo" version of v3,
Have the purchased version of 2.x and demo version on dual-boot of Vista. Haven't tried this problem there to see if it replicates. May try later when I have a chance to re-boot.
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