Others may have given you the answer already, but I am not certain they gave
you the REFERENCE.  See:
 
 
http://publibz.boulder.ibm.com/cgi-bin/bookmgr_OS390/BOOKS/IGY3LR30/6.2.31.4


"6.2.31.4 Sequential files
     ...
 The number of character positions in record-name-1 must equal the number of
character positions in the record being replaced."

Bottom-Line
  For files in sequential access mode, when you do a REWRITE (with 
        RECORD VARYING IN SIZE .... 
clause,

  THOU SHALT NOT change the record size between (successful) READ and
REWRITE. 

* * *

Now, I *know* that the code you posted isn't what you "used to have" with
CMPR2 because RECORD VARYING IN SIZE didn't work with CMPR2 ... see:

 
http://publibz.boulder.ibm.com/cgi-bin/bookmgr_OS390/BOOKS/igya1101/APPENDIX
1.4.2.2 

So my real question is what *DID* work with the old source doe (what did the
application actually DO?) and how can you get back to accomplishing what you
want to do.

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