I can confirm this behaviour... but this is a bug in totem's playlist handling (libtotem-plparser).
** Changed in: gstreamer0.10 (Ubuntu)
Sourcepackagename: gstreamer0.10 => totem
Status: Unconfirmed => Confirmed
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Gstreamer resolves relative paths as /home/[user]/[Path]
https://launchpad.net/bugs/46729
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