Hello Steven,
I am using windows XP home edition. I have already changed the PATH (on environmental variables list). But still I get the Error message in the command window in blue when I try to run audio. I get two different kinds of errors, one is when I click play in an empty blue application (C:\WINDOWS\DYSTEM32\ntvdm.exe ERROR while setting up environment for the application. Choose 'Close' to terminate the application.) this message comes up on a separate window, whereas the other error message is only on the DOS window and appears when I try to run one of the Berklee examples or a wave file (see blow).
I have tried writing the full path the "csound -d -o -dac" command that you suggested but it does not change anything.
windows should be able to find csound now as I have created the PATH so I don't think it is a problem with locating Csound itself.
Many thanks
Peiman  

<TOTAL_DUR> = 80.75
<PROCESSING_START> = 0.0
Began exec(csound64 -RWdo /work/audio/output/orchestra.wav  "C:\Documents and Se
ttings\Owner\My Documents\blue_berkleePresentation\blueExamples\tempCsd41761.csd
").
Ended exec(csound64 -RWdo /work/audio/output/orchestra.wav  "C:\Documents and Se
ttings\Owner\My Documents\blue_berkleePresentation\blueExamples\tempCsd41761.csd
").
[error] - CreateProcess: csound64 -RWdo /work/audio/output/orchestra.wav "C:\Doc
uments and Settings\Owner\My Documents\blue_berkleePresentation\blueExamples\tem
pCsd41761.csd" error=2