Windows 7 (uhuh, that's right!) Dataflex 2.3b (I heard that!)

One of our techs got a new PC with W7 and tried to run our inhouse application using the batch file we use on all our workstations called Remote.bat.
But he is getting the above error. I looked at it and everything seems to be working correctly until it tries to Dfrun.

The dfpath, dfprog, the Path environment variables are looking good.
Dfpath=R:\.;R:\ate\dataflex;R:\ate\atedat;R:\ate\a teobj;R:\ate\atesrc;

With the termlist.cfg in R:\ate\dataflex.
Anyway, this runs fine on XP machines. Any ideas appreciated.