I'm not exactly sure why but it started working. If it may help someone else here's what I did....

I created a simple test program, and compiled it and it worked. Then I added Include "Modedefs.bas" and I got a message saying that it needed to use MPASM. I had it find MPASM, then it compiled. So I went back to my original program and recomplied and it said it the filename path was too long by 4 bytes. I shorted the filename and then it compiled ok.

Go figure....