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I don't know if that happens only to me.. but: If you can't get DEMOs to run, maybe letter case is the problem. If you scroll up on quake3 messages on console and find "error: can't find file XXXXX", replace the file name you've got with that one on the error message.
fs, I only experienced problems when I tried playing demo's from the demo menu, then it wouldn't play some of them. If I opened demo's from the console it did work. Concerning letter case, it just seems to be case sensitive? I tried opening DEMO with /demo demo it didn't work, if I tried /demo DEMO it did work.