something's probably wrong with your installation.
It works fine here.
Here's how I manage my one note files.
I have one note files located on another partition (if I need to reinstall, I don't have to worry about moving those).
Once I've reinstalled (Windows, Office version, doesn't matter), I just have to open windows explorer and navigate to my one note folder, then click on any file and choose to open Workbook.
This way One note will use the folder on another partition instead of C:\
Thats's it, this should also work for you.