I have found the "Whereever Change Directory"(WCD) tool very useful on the command line. Its a directory changing tool that changes to the directory without requiring to type the whole path. Porting it to Launchy as a plugin would be a great utility.
The windows version of the WCD tool uses a batch file to perform the directory change operations. A batch file by the name wcdgo.bat it created at a location indicated by the wcd.bat file. To use it with Launchy, we would need to append a "start ." statement to the file. Here is the modified version called wcdLaunchy.bat, forked from wcd.bat. This is the file that has to be fed into the Runner plugin with an appropriate keyword in Launchy.
Here is how the batch file looks like.