Seems that Windows Live Photo Gallery 2012 doesn't display anything when the 'Pictures' folder has been moved to another drive.

Repro (Win 8.1 / Windows Live Essentials 2012)

1.  Move 'Pictures' folder -- right click on My Pictures folder and change location to some other place (e.g. d:some folder_PICTURES) and fill it up

2.  Open Photo Gallery

Expected

- to see my photos

Actual

"Sorry, no items matched your search

Try expanding your search by removing filters from the query."

---------

The query is empty.

I've uninstalled and reinstalled.

I've removed the folder and put it back.

I've tried with explicit path and the localized one.

Photos do appear in Windows Media Center and in the Windows 8 Picture Gallery / Library.

Please contact me directly and I can test your fix.