I'm using the newest binaries for kdenlive and mlt from sunab-svn on Kubuntu 12.10, x86-64.
Trying to stabilize a clip results in the error message "Cannot write to path: /.mlt". Of course, it is not allowed to write anything directly into or next to the root. *shudder*
No stabilizing is done, however.
This error seems to be related to the situation where I have clips with the same name (as generated by GoPro's HD Hero cameras), but in different folders. When there is already an .mlt file in the project's root then this seems to cause this strange error...