Howdy Rafi,
The Module Pathname, the Pathname of Source File Containing Function and the Pathname of CVI Project File to Open options can either be an absolute or relative pathname. Relative pathnames are relative to the TestStand search directory paths.
For example, if you open up the AccessingArrays example located in <TestStand>\Examples\AccessingArrays\UsingCVIStandardPrototype\, you notice that all the fields mentioned above are using relative names (i.e. Module Pathname = "AccessingArrays.dll" not C:\Program Files\.....). This is because all those files are in the current sequence file directory which is one of the default search directories.
Hope this clarifies things. If you are still having some problems, let me know.
Best Regards,
Jonathan N.
National Instruments