when we start our .net application using a double click on the explorer or from command prompt where your folder path is proper full name then there is no issue at all. But when you start it from command prompt with the path being a Shortname involving a ~ the application behaves weird. IF is entering condition though the condition evaluates to FALSE in quick watch. Accessing a value of a variable in quick watch and immediate window shows value. but when you use it to assign to another variable in code, it returns NULL / no value.
another observation: when you attach Visual studio to debug the app, and when you go about "Set as next statement" visual studio is giving options to select which dll to work up on. i have never seen this prompt before!