[Dev-C++] CreateProcess balks during compile operation

[Doug M. <dou...@al...>]

Running Windows XP SP1, Dev-C++ full install 4.9.8.0.  Created a new 
console application project and inserted a "hello, world" print 
statement into the source.  I'm getting some kind of subcommand 
dispatching error when I try to build:

----
process_begin C:\Proj\playpen\process_begin
CreateProcess(C:\DJGPP\bin\sh.exe, C:/DJGPP/bin/sh.exe -c "g++.exe -c 
main.cpp -o main.o -I\"C:/Dev-Cpp/include/c++\" 
-I\"C:/Dev-Cpp/include/c++/mingw32\" 
-I\"C:/Dev-Cpp/include/c++/backward\"  -I\"C:/Dev-Cpp/include\"  ", ...) 
failed.
-----
make (e=87) C:\Proj\playpen\make (e=87)
The parameter is incorrect.
-----
  C:\Proj\playpen\Makefile.win
[Build Error]  [main.o] Error 87
-----

I replicated this by going into the source dir with a command prompt and 
typing "make -f Makefile.win".  Behaves in just the same way.

It looks to me as though the g++ command isn't getting off the ground. 
Now, it's odd to me that my Dev-C++ directory try contains no sh.exe at 
all - you'll note that it's trying to run one from a DJGPP directory 
that occurs later in the PATH chain.  Which, by the way, is:

Path=C:\Dev-Cpp\bin;C:\DJGPP\bin;C:\WINDOWS\system32;C:\WINDOWS;C:\WINDOWS\System32\Wbem;C:\Program 
Files\Common Files\Adaptec Shared\System

Any clues?  Do I need to update or reinstall to get that sh.exe?

Thanks in advance
Doug