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Relative path mode: all paths (if possible) are converted to relative when saved to config. (of course paths to other volumes can't be converted)
Portable mode (enables also relative path mode): registry is not used, can have more than one winuae "installation" at the same time without "leaking" any config data between installations. Also useful if you want to have full winuae installation (including config files and images) on USB stick.
You probably have wrong "path mode", make sure Paths panel says "WinUAE default (exe directory)". This selects default root path.
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