I think this is broken and that you are being misled by bash handling PATH incorrectly.
Would it be better with using "cut"?
case "$ELEMENT" in
"~"/*) ELEMENT="$HOME"`echo "$ELEMENT" | cut -c2-` ;;
esac
Of course, it won't work in cases like "~tim/bin" but it is better than
nothing...
(sorry for the delay, I never received your answer)
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