Debbie, ISHELL is not a 'normal' shell environment. You navigate directories by using the ISPF interface not the command line. If you want to get to a directory you can type it's fully qualified path on the four blank lines on the main ISHELL panel, or, you can type the first directory and use the 'L' prefix to traverse the subdirectories. Your your home directory remains your CWD. If you want to use any other directory in a command from the command line you need to type in the fully qualified directory name. You cannot change the CWD by entering a 'cd'.
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