Hi hawkza,
The Granny Viewer looks at the absolute path for the texture.
So if you see something like
D:\blah blah\blah\texture.dds
You must create that same path.
I did a DVD with all the textures placed in all the paths I could find.
That worked.
Till I needed more paths.
(I'd locked the DVD!

)
So I used an external HD to do this.
Now I can create paths as needed.