Posted this in the news story for the release version, and was directed here:
After updating from the a Developer preivew release to the final Songbird Portable 1.2, moved my Music and songbird Portable directory from my external drive (U:) to my internal drive (X:). The relative paths have not changed (Music and SongbirdPortable) With the external drive unplugged, songbird can't see any of my music, as it is still looking at the external drive letter instead of the internal one. Clicking on a song that won't play and choosing show this file reveals that it is looking for the file on U.
I asked about this during the test releases, and the response was that this should be fixed before the final release. Was that not the case, did this slip through the cracks, or am I the only one experiencing a bug here? I can try a fresh install and then move that, but I really don't want to rebuild my library from scratch (with ratings and playlists and all).