>Drop the " and the spaces >set PAR_TEMP=data\internal\
Hmm. This seemed to have some effect: with data\internal created, a previously generated application (with no PAR_TEMP defined) crashes. This lends an answer to your "affects the runtime, not compilation" question.
Incidentally, it seems to also crash with the data\internal directory created. If I jump out of the shell (where I set the PAR_TEMP) and run it through Windows, everything works.
Setting PAR_TEMP to the above (forward or back) BEFORE compilation causes a crash with parl.exe.
:(
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