SAS 9.1 - Getting  error on %INCLUDE line of program - not sure how to set the path to the file being included

I'm trying to run a SAS program that was provided with software we purchased for work.  I've used SAS ages ago, but really don't know it.  I do know programming in general, just not in SAS.  I am running SAS 9.1 for Windows.  Here is where the program is getting stuck (quite early on, I might add):

%INCLUDE 'xformat.sas';
WARNING: Physical file does not exist, C:\WINDOWS\system32\xformat.sas.
ERROR: Cannot open %INCLUDE file xformat.sas.

The sas file this include line is in is in the same folder as the file it is trying to include (xformat.sas).
I don't know why it is looking in C:\WINDOWS\system32 for the file, but it certainly is not there!
There are many, many of these includes throughout the program.  I'd like to know how to get past this error, so that it can locate all these include files.

Thanks for your help!  Oh, of course, this is somewhat urgent!!!

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