I have reported it to DNN to get it corrected hopefully soon. http://support.dotnetnuke.com/issue/V... In the meantime I suggest you to use a different strategy for your local sites. Instead of running of a subfolder like that, you could run it from the site's root.
Hey thanks very much Aderson!
I got it working by using http://www.dnnhero.com/Videos/tabid/5. Should have done it this way in the first place.
I'll sleep better tonight.
Cheers,
Hutch