Does not use InstancePath defined in gameinfo.txt

[RevCosmosis]

It seems that func_instance file paths must be relative to the parent .vmf rather than from gameinfo.txt's InstancePath.

Note: Easily fixed by rearranging your files and using Hammer's Replace function (Ctrl+Shift+R) to fix your func_instance file paths. Nested instances may or may not work.

[Metapyziks]

I wasn't aware of InstancePath, I'll try to fix this tonight. Thanks for reporting!