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With TinyMCE 3.5.x the Path location option in the "Editor Appearance" section is without effect.
Apparently the option theme_advanced_path_location is no longer recognized in TinyMCE 3.5. Instead there is the option theme_advanced_statusbar_location.
This option also works for the 3.4 branch of TinyMCE (older versions not tested).
I therefore propose to change wysiwyg/editors/tinymce.inc, line 268
'theme_advanced_path_location' => isset($config['path_loc']) ? $config['path_loc'] : 'bottom',
'theme_advanced_statusbar_location' => isset($config['path_loc']) ? $config['path_loc'] : 'bottom',