BTW: with the latest PSPSDK from svn the current directory is set to the one where the EBOOT.PBP is in at startup, so you can just write 'fopen("file", "r")' and it works, if "file" is in the same directory where EBOOT.PBP is.
mainly the only reason is i am using the launcher program for testing, and currently it doesn't work when arguments are set... good to know you can open a file with no path in the current directory though.. thanks.