Michael Stark:
You are using a path with spaces...
Good catch!
Bruce — you don't need to do anything with your Windows folder names or paths. Rather, use DOS path names instead of Windows long path names in your make files.
To see the DOS short path name, start a Windows command prompt and then...
C:\> dir/x
You'll need to copy the short names to use in your bmake files. For example, here's the path to my installation of MicroStation V8i SS3 (don't use this — it's just an example — your computer will be different)...
MS_SS3=G:\PROGRA~2\BENTLE~2\MICROS~1\