I did run into one odd parsing issue that hasn’t happened to me before, so for anyone else out there, this may help:
My Space Ace framefile lists the .m2v files in lower case. However, almost all of the video files themselves are named with upper case characters. Daphne would not parse the files because it could not find them (framefile references appear to be case-sensitive), so. . . inside the ace.daphne video file folder:
rename ‘y/A-Z/a-z/’ *
That took care of the video files easily enough. I tried launching Ace again and this time parsing completed just fine and the game ran smoothly.