As Jim said, it should work fine.
If the cover art file is stored in same folder as the FLAC files and its name is folder.jpg MC can find it automatically. Select the "In the same folder as file (as Folder.jpg)" setting in Options > File Location > Cover Art...
The base path "Schulman FLAC\FLAC\" seems unnecessarily long and doesn't provide any useful information. I'd change it to a short single level path like "Music\".
I always prefer the shortest possible paths. In databases the stored amount of filename data always grows when the paths are longer, but I doubt the path lengths can cause any practical effect in this case or maybe in any case when we are speaking about an MC database.
Finally, you may already have done this, but if you have not, create at least one backup archive of your new files to another hard drive. Two backup archives on two separate drives would be even better. At this stage you can simply copy everything, but in the future you may want to use a dedicated program for syncing the changed and new files. For instance,
Karen's Replicator is a nice freeware program that can handle the task easily.