I'm having this problem too.
Did anyone figure out what is going on?
goldfisch didn't say whether he was running Pmw and BLT under Windows or Linux. But his problem is common under Windows, from what I've read elsewhere. BLT seems to be very fussy about location, and indeed I have never gotten it to run under Windows, only under Linux.
It would sure be good to hear from someone who has it working under Windows!