Problem solved.

A colleague discovered that at the end of the jobstream was a '/*EOF'
statement.  When this was removed from the jobstream, the JOB card was
recognized and executed as planned.

In the Assembler Services Guide concerning the Internal Reader, the
/*EOF statement causes the jobstream to be immediately sent to JES2
input services.  The example for multiple jobstreams used only 1 record
for the JOB card.  In the example, every JCL statement was contained on
one record.  This leads me to believe that such a jobstream submitted
via the internal reader cannot have statement overflowing to a second
record.  In this case, the JOB card was contained on 2 records.  The
continuation was not allowed.  This in turn resulted in the ILLEGAL JOB
card.

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