yes, and yes, and I can't see anything wrong with the simple expression above.
I use the following for the path:
IF(IsEqual([media type],audio,1),if(isequal([album],Assorted Tracks,1),My Music\[album],if(isempty([disc #],1),My Music\[file type]\[album artist (auto)]\[Album],My Music\[file type]\[album artist (auto)]\[Album]\Disc [disc #])),IF(IsEqual([media type],image,1),IF(IsEqual([genre],album art,1),My Music\[genre],My Pictures\MC\[date (year)]\[date (month)]),Movies\[genre])
and the following for the filename :
IF(IsEqual([media type],audio,1),If(IsEqual([album artist (auto)], /(Multiple Artists/), 1),[track #] - [artist] - [name],[track #] - [name]),IF(IsEqual([media type],image,1),IF(IsEqual([genre],album art,1),[album artist (auto)] - [album] /([keywords]/) ~ [dimensions],[date (filename friendly)]),IF(IsEqual([genre],Music Video,1),[artist] - [name],[name]))
and they work a treat.
[nudge]the only glaring omission is the ability to use expressions in the base path field.[/nudge]
I can't think why it might not be working for you...
network drives?
perhaps if you were to paste the expression exactly as you're using it, there might be more clues?
-marko.