Using the example,
It doesn't work out if instead of Media/Movies (Share is Media) your movies are stored within a Movies (or a Film) share. It looks to see if you have Media or media or MeDiA as a share (and within that share if you have Movies or movies or mOvIeS as a folder) If the Media (or media or mEdIA) share doesn't exist then the path as specified within the template is passed untouched
Also, this is only on new installs. Previous installs aren't touched at all.