OK, a bit late to the party but I have the same issue. Error from the log:

(ERROR) -- BDM.pyc:197 - DB error: C:\Users\Tom\AppData\Roaming/Bitcoin/blocks is not a valid path

That path is indeed not valid. But I created armoryqt.conf in the correct Armory directory (the same where the log is) with this content:

satoshi-datadir="E:\Bitcoin\blocks"

Yet it seems to ignore it. I have the latest version available - 0.96.5. Perhaps the info has not been updated and the config file is different now? It definitely seems to be ignoring it.

Even when I tried running ArmoryQT via CLI with the satoshi-datadir="E:\Bitcoin\blocks" switch, it ignored it too.

Thanks for any ideas!