Default Materials missing after moving game directory

After copy/pasting the game dierectory into another directory like the desktop (I've tried other directories also) the default textures/materials dont show up on the tower and the huts. The error in the console looks like:

GFXTextureManager::createTexture - Unable to load Texture: C:/Documents and Settings/michael/Desktop/TGEA 1
GFXTextureManager::createTexture - Unable to load Texture: C:/Documents and Settings/michael/Desktop/TGEA 1
GFXTextureManager::createTexture - Unable to load Texture: C:/Documents and Settings/michael/Desktop/TGEA 1
material unmapped: OAK2
material unmapped: E7SBRICKFLOOR
material unmapped: GRANITE_DARK


It's not geting the entire directory which looks like:

C:\Torque\TGEA_1_7_0\

Not sure why this is happening. Anyone have any ideas?