The problem is happening in this version:

totem:
  Installed: 3.0.1-0ubuntu21.1
  Candidate: 3.0.1-0ubuntu21.1
  Version table:
 *** 3.0.1-0ubuntu21.1 0
        500 http://us.archive.ubuntu.com/ubuntu/ precise-updates/main i386 Packages
        100 /var/lib/dpkg/status
     3.0.1-0ubuntu21 0
        500 http://us.archive.ubuntu.com/ubuntu/ precise/main i386 Packages

Error message can be replicated as follows:

1.- Open any media file using totem from terminal window (on directory A)
2.- Open another terminal window
3.- Switch to another directory (directory B) and launch totem with any file from directory B/
4.- Error message appears

The message on the totem instance is this:

** Message: Error: Resource not found.
gstfilesrc.c(1042): gst_file_src_start (): /GstPlayBin2:play/GstURIDecodeBin:uridecodebin3/GstFileSrc:source:
No such file "<media file>"

In my case, launched totem from ":~/Music/1/Quantum Conundrum Soundtrack". Then on another terminal launched totem from "~/Music/1/Riverside - 2013". Error is

gstfilesrc.c(1042): gst_file_src_start (): /GstPlayBin2:play/GstURIDecodeBin:uridecodebin1/GstFileSrc:source:
No such file "/home/jci/Music/1/Quantum Conundrum Soundtrack/01 - Riverside - New Generation Slave.mp3"

Seems that totem is sticking to the first directory instead.

See also:

https://bugs.launchpad.net/ubuntu/+source/totem/+bug/891982