are all the problem files in the Karaoke folder ie. in the exception rule?
Yes. I changed a couple different things so can't say what would correlate.
both music and karaoke were managed by separate MB 2.5 libraries.
MB 3.0 had just the music.
I updated to the latest 3.0 patch, copied/pasted my organization rules from 2.5 to 3.0 and scanned in the karaoke folder.
This is when I noticed the problem.