Global Search and Replace will replace all occurrences of a string of characters, such as a folder location. It can be used to point the image links to a new location or renamed folder. But I prefer to click the camera icon, browse to the new location of the image, and tell PAF to use that location for all images. I find it simpler and more predictable. ANY use of Global Search and Replace should be preceded by backing up your PAF data.
Note that Global Search and Replace is not usually suitable for re-linking to images that have been renamed unless the new names follow the same basic naming scheme as the old names. For example the addition of a birth year to the links for all images containing Henry_Jones can be accomplished by Search for > Henry_Jones > Replace with Henry_Jones_1878. e.g. Henry_Jones_birth_certificate.jpg becomes Henry_Jones_1878_birth_certificate.jpg