Environment variables - Can't get program to run although it's in path

My System32 folder is listed in my Environment Variables path.  I have a command line program that I copied to that folder.  The application will not start from the System32 folder or from any other folder.  However, it will start from another folder if it is present in that folder.  In other words, abc.exe will run at a command prompt at c:\xyz, if abc.exe is in c:\xyz.  So, I know that the application is working.  If I try to run it otherwise, I get the message that it's not an internal/external command, program, or batch file.  Other command line programs that are in System32 seem to work as they should throughout the system.  Thanks.  
sjw601Asked:
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c661jmbConnect With a Mentor Commented:
Can I just mention that it is extremely bad practice to run a program from the system32 folder.

This folder is for Windows Specific files not end user or third party applications.

You should install and run your program from the c:\program files(x86) folder.

You could infact cause a false positive for your AV scanner as it is trying to execute a non certified executable from the system32 folder. Much like a real virus may do and could block the program from running.

Hope this advice helps.

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sjw601Author Commented:
Thanks.  I created \program files(x86)\AppFolder and placed the exe there.  I added the path to my environment, and it now works.  I have several command line tools, and the publishers always suggest dropping the exe in System32.  I'd still like to know why it wouldn't run from there.  My AV is set to not scan for unwanted or unsafe applications, and it would have issued an alert if it found the program objectionable otherwise.  I also tested it by disabling my AV, and the app still wouldn't run from System32.  
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