I'm guessing that the md5 files are not in the same directory as the files to be checked? You have a folder badhat1994-09-10 that has subfolders for each individual disc, eg d1 and d2? The md5 checksum files for each disc are both in the main folder? If so, if you moved them (the md5 checksum files) into the respective folders and then checked them with TLH, I think you'll find that they work ok.

(I think, though I'm not entirely sure, that)The asterisk acts as to tell the checksum part of TLH to also check for subdirectories that may exist in the main folder, as well as checking at the level of the main folder.