According to http://groups.google.com/group/Google-Labs-Picasa-for-Linux/browse_thread/th... a user is having trouble because the symlinks in ~/.wine/dosdevices don't work when on a Samba share.
It's unfortunate at this late date to realize that one of the key choices Wine made isn't compatible with the cifs/samba combination... but I guess nobody expected home directories to be served with that network filesystem.
If this turns out to be a real problem, what are our options? The first thing that comes to mind is to notice the problem and fall back to underscore instead of colon somehow...