I'll have to build a debug build and check. I'll report back when I've done that
EDIT :
-mod FS1_Port, ,MediaVPs
-allslev
Building file index...
Searching root 'F:\games\freespace2\FS1_Port\'
Searching root pack 'F:\games\freespace2\FS1_Port\dop.vp'
Searching root pack 'F:\games\freespace2\FS1_Port\eodredux.vp'
Searching root pack 'F:\games\freespace2\FS1_Port\FS1_SCP.vp'
Searching root pack 'F:\games\freespace2\FS1_Port\fsport3_0_3.vp'
Searching root pack 'F:\games\freespace2\FS1_Port\fsport_fs1_training.vp'
Searching root pack 'F:\games\freespace2\FS1_Port\fsport_glow.vp'
Searching root pack 'F:\games\freespace2\FS1_Port\fsport_missions.vp'
Searching root pack 'F:\games\freespace2\FS1_Port\fsport_shine.vp'
Searching root pack 'F:\games\freespace2\FS1_Port\sparky_hi_fs1.vp'
Searching root pack 'F:\games\freespace2\FS1_Port\stu_fs1.vp'
Searching root pack 'F:\games\freespace2\FS1_Port\tango_fs1.vp'
Searching root pack 'F:\games\freespace2\FS1_Port\warble_fs1.vp'
Searching root 'F:\games\freespace2\ \'
Searching root 'F:\games\freespace2\MediaVPs\'
Searching root pack 'F:\games\freespace2\MediaVPs\Kara High Quality Nebulae.vp'
Searching root pack 'F:\games\freespace2\MediaVPs\mv_adveffects.vp'
Searching root pack 'F:\games\freespace2\MediaVPs\mv_core.vp'
Searching root pack 'F:\games\freespace2\MediaVPs\mv_effects.vp'
Searching root pack 'F:\games\freespace2\MediaVPs\mv_models.vp'
Searching root pack 'F:\games\freespace2\MediaVPs\mv_music.vp'
Searching root pack 'F:\games\freespace2\MediaVPs\mv_textures.vp'
Searching root 'F:\games\freespace2\'
Searching root pack 'F:\games\freespace2\root_fs2.vp'
It definitely is checking for that other " " folder. I'll take a look at the launcher code but I doubt I'll be changing anything.