So I did have it in the actual same directory. Last time I used a TGC product it was DBC so I'm still kind of used to that... But I moved my file to a "media/Models" folder and it still can't find it.
The OS is windows 7 professional service pack 1. I'm pretty sure it isn't a case issue though. When I try to load in a ".obj" object I get this message "Error: Could not find file cube.obj in main.agc at line 20". It looks like things have progressed a lot since DBC, do you need to import it into your project or something now?