Loadui agent does not file datasource file

I am running a test case via loadui/soapui runner that was created in soapui pro. There is a datasource of type file in the test case. The ${projectDir} variable is used in soapui to find the associated file. The step fails unable to read the file. It should have had the ${projectDir} value to prefix the \Service Options.txt file. This happens with soapui/loadui/loadui agent running together on Windows 7 and when running together on mac osx. Is there some configuration step I have missed?

java.io.FileNotFoundException: \Service Options.txt (The system cannot find the
file specified)
at java.io.FileInputStream.open(Native Method)
at java.io.FileInputStream.<init>(Unknown Source)
at java.io.FileInputStream.<init>(Unknown Source)
at com.eviware.soapui.impl.wsdl.teststeps.datasource.FileDataSource.a(So
urceFile:99)
at com.eviware.soapui.impl.wsdl.teststeps.datasource.FileDataSource.load
(SourceFile:89)
at com.eviware.soapui.impl.wsdl.teststeps.WsdlDataSourceTestStep.next(So
urceFile:503)