If you are specifying these parameters in the config file, don't use quotes, and do use an absolute path. Now that you've fixed the other issue!
Do not use an absolute path? Then, what's the current directory I'm in? The directory I run bitcoind from? $HOME/.bitcoin?
I have issues even if I just do:-
blocknotify=echo %s
Which, isn't absolute, nor does it contain quotes, so, same issue.