The Path Length is 271 chars. That is very long.
I have seen issues before with Excel not supporting paths longer then 218 characters, while the user could create a path of more then 220 characters. The only solution was to make the path shorter.
http://msdn2.microsoft.com/en-gb/library/zw949162(vs.80).aspx
I would not be surprised that this is not really a "problem" and all is just working "as designed".