PMFJI, it is getting difficult to follow this thread, so maybe it is worth backing up a bit and start with this... Have you installed the minimum requirements (e.g. Visual Studio 2005, MicroStation, MicroStation SDK)? If so, use the MicroStation Developer Shell to compile one of the examples:
- Windows Start > Bentley > MicroStation V8i ... SDK > MicroStation Developer Shell
- cd to the folder where the basic example make file is
- bmake -a -dDLM_NO_SIGN
Just try that (exactly how it is identified) and see if that gets you a compiled application. If it does not, what OS are you running on? If it is a current one (like Windows 7), have you lowered UAC for the account you are using when compiling the application?