Okay, that's what I assumed, I was just a little surprised that it did work if the video and funscript were in the same directory, and you are correct that if I remove the special characters it does work.
I do very little streaming, so I store my videos in one directory and funscripts in order to keep things clean. I would definitely appreciate it if you could leave the original filenames for locally or SMB played files. If it's not too much to ask, will it search that fallback directory recursively?