VLC Association Stops If Folder Relocated

I have been using VLC Portable for a while now. Merely as a stand alone media player on my PCs. Has never missed a beat until today. I decided to move all my portable applications into a folder of their own. VLC however, seems to not be liking this. I can no longer play mp3's or associate them with VLC. In windows 7, if i right click on the mp3 file that is not associated with anything all of a sudden, choose application, browse to my vlcportable.exe, click okay/open it as the program I want, the browsing window disappears as you'd expect, but VLC is NOT placed in the window as an application you have chosen (which is what it would normally do). VLC indeed isn't selected or chosen, if you okay out of there as tho it has, the file remains unassociated.

I have removed from my win7 install, all Media components (media center / media player / movie maker), rebooted, rerun VLC manually and in preferrences told it to associate itself with ALLL possible files you can tick. Saved out of there but no difference.

The only fix I have found, is to put the VLCPortable folder, back where it was originally.

Obviously this cant be right if this is a portable app. Any hints?