My guess is that you have downloaded the zipped package and then unzipped it without recreating the directory structure or you downloaded a PPD for a different version of perl.

You should end up with a ppd file and a sub-directory that reflects your perl version and operating system. If you are using Windows and Perl 5.8.x then the subdirectory will be called MSWin32-x86-multi-thread-5.8

You may also want to check that the ppd targets the version of perl that you have. e.g. 5.6.x or 5.8.x

You don't need to add the local disk as a repository. You can just specify the file path.