I noticed that the path / file name strings are cut starting on 80 characters length.
This got me thinking that I have automatic line length wrap activated just on that length.
Now, when I tried the script without the automatic line length wrap, it started to work OK!
Here's where the line length can be switched:
Tools->Options->File Options->Wrap line length
I think if you put "80" there, you should be able to reproduce the problem.
Now the question is that does the script use temporary file of some sort when comparing the existing directory / file hierarchy to the current one?
If it does, could that be changed somehow, so that using automatic line length wrap would not cause problems?