AO distribution Directory structure mixed up

All,
I am seeing an issue with regular AO pushed through ZSM and wondered if
anyone has seen this and has a resolution.
Here is the scenario

1. Simple AO that runs a command and has a file for distribution in the
AO.
2. AO has a %SOURCE_PATH% macro
3. SOURCE_PATH macro = \\Distributor.domain.com\vol1\zen\software
4. Application file path = %SOURCE_PATH%\file.txt

When the AO is distributed it comes across to the subscriber fine and
SOURCE_PATH macro is modified to \\Subscriber.domain.com\vol1\zen\software

The Issue is in the file structure that is created on the Server
on the server i am getting
VOL1\zen\softwaresoftware
or
VOL1\zen\softwareware

Does anyone have any ideas on this ?
Thanks
Jules ;-))