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You're right, my code was shite. Strange though it seemed to work on some files. The following updated version does everything as intended with the help of os.path.join:
def traverse (targetDir):
 currentDir = targetDir
 dirs = os.listdir(targetDir)
 for entry in dirs:
 if os.path.isdir(os.path.join(currentDir,entry)):
 print("Traversing " + os.path.join(targetDir,entry))
 traverse(os.path.join(targetDir,entry))
 else:
 if os.path.isfile(os.path.join(targetDir,entry)):
 print("Processing" + " " + os.path.join(currentDir,entry))
 else:
 print("Not file: " + entry)
 print("\n")