This still works for me on a Mac, unless the files are PC when it is looking for a Pic called Folder1/folder2/picname.tif rather than just picname.tif.
Check for unsupported characters in the folder name. Also when the file name is too long (above about 32 characters) it doesnt work, or if the pic name has changed to ~1 etc due to a collect.
... there was the puzzle of why the sun came out during the day, instead of at night when the light would come in useful.
Terry Pratchet