Cobol exception when a call is issued from a C# web service to a COBOL class

Problem:

Net Express 4.0 with .NET (2003)

A C# web service calling a COBOL program built as a DLL causes COBOL exception:

Edit 129: The File "D:\\...\\FILENAME.CBL" is marked as read-only.

Build tab shows:

Generating system database

Generating classes...

Failed to create database file. Check that existing file is not locked.

Attempted to create file : C:\\Documents and Settings\\All Users\\Application Data\\Micro Focus\\NetExpress\\4.0\\SYSTEM.DAT The attempt to create a new system database failed The original database will be restored

Resolution:

Check that the PATH variable is pointing to the application dlls and the COBOL runtime system