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ok database seems fine but the exception is something to do with a path.   Unfortunately I am away with work and I don't have the MP 1.1 source to build a version of this for debugging.

The error you are getting is about an invalid path.   This could be a couple of places.   Can you try turning off audio scrobbler plugin?

Also does this happen 100% of the time?   Does it happen in both shares view and database view?

You have not done anything odd with the thumb folder?