Here's another (I think better) workaround:
Create back-up to new location
Rename original project folder (i.e. add an "x" to the end)
record audio in new back-up (audio will get recorded to the correct folder)
Now you can rename the original folder back to it's original name (i.e. remove the "x") and all subsequent files recorded in the new back-up project will be recorded to the proper location.
This is still a workaround and I'm amazed Steinberg hasn't chimed in...
Comp1: Windows 7 64bit, Gigabyte GA-X58A-UD3R, Intel I7 970, 12 gig Patriot DDR3 ram, RME Digiface, Geoforce 66000 PCIe, , Cubase 7.5.10
Comp 2:Windows 7 64bit, Asus P5W DH Deluxe, Q6600, 8 gig Corsair XMS ram, , MR816 X(x2) VE Pro