Seeing the same problem. I initially reported it here.
Have seen this behavior on another PC as well.
I have tried to set the parameter in the registry to allow long folders/filenames but it doesn't seem to have done anything.
Running the tool TLPD, I have so many instances above the 255 limit that it would take ages to correct manually. Anyone know of a utility that can not only detect possible problems with long paths/filenames, but correct it too?