thank you for reporting this, we will have it addressed in an upcoming update.
instead of changing the path on that line, add this line of code after it:
if (function_exists('rel2abs')) $CKEditor_config["filebrowserBrowseUrl"] = rel2abs($CKEditor_config["filebrowserBrowseUrl"],dirname(__FILE__));
if you prefer the look of the old file browser, you can change the skin back by editing this section of the filebrowser line:
theme=webassist_v2&
to:
theme=webassist&