Hello there

!
Classic Shell gives me the ability to do things that I had always wanted to with the start menu, but I've come across quite an odd little problem...
To explain what I mean in the title a bit more clearly, on the right lane of the start menu, I've added a custom item set to "Display as menu." It's set to display a directory of my hard drive that includes the .exe for the PS1 emulator ePSXe, as well as ePSXe's various files and such. What's odd is that when launching ePSXe.exe from this menu, ePSXe can't seem to read anything from its folder. Nothing is configured, and it can't find its plugin files. It looks like it's running ePSXe as if it were just the .exe in an empty folder.
I hope that's explained well enough... let me know if I need to elaborate a bit more.
Any ideas?
*edit
Wewps, forgot to point out which OS I'm using

OS: Windows 7 64-bit Home Premium