Installing 1.9.5 fresh | importerrors

After careful consideration we decided to upgrade to 1.9.5. Upon importing the full media library the monitor holds on what its seems is still an encoding error. It fails with:

 File "/usr/lib/airtime/airtime_virtualenv/lib/python2.6/site-packages/pyinotify.py", line 2075, in __walk_rec
    for root, dirs, files in os.walk(top):
  File "/usr/lib/airtime/airtime_virtualenv/lib/python2.6/os.py", line 294, in walk
    for x in walk(path, topdown, onerror, followlinks):
  File "/usr/lib/airtime/airtime_virtualenv/lib/python2.6/os.py", line 284, in walk
    if isdir(join(top, name)):
  File "/usr/lib/airtime/airtime_virtualenv/lib/python2.6/posixpath.py", line 70, in join
    path += '/' + b
UnicodeDecodeError: 'ascii' codec can't decode byte 0xc3 in position 21: ordinal not in range(128)

which still seems to be the unicode error. I checked on the dev site and its supposed to be fixed.
Any solutions ?

Cheers
Radio A6