I can confirm (manually sorting on Path fixes the issue), but I see it in both Details and Art with Details views. Added as: http://www.ventismedia.com/mantis/view.php?id=8866

I have encountered a bug when I am using auto-playlists that have Path as their sort criteria. When in Show Details view, files are organized by path without paying attention to the drive letter. I know that I could use Media as a sort criteria as well, but the issue is that this issue does NOT occur when in Show Art with Details view, where there it is sorted as expected.