Library cannot be opened - Error - And then Oracle Forms "Stopped Working"

Windows Vista - Service Pack 1
Rating - 4.9
Processor - Intel Core 2 Quad CPU    Q6600 @ 2.40GHz  2.40 GHz
Memory (RAM) - 8.00 GB
System Type - 64-bit Operating System

Oracle Forms: 10.12.0.2
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I am unable to open a library.

Initially, when I attempt to open the library in Forms I get a "PDE-PLI018 Could not find library" error message.

Ensuring that the folder exists in the registry entry FORMS_PATH, creating and referencing a virtual drive where my library exists I still get the error.

BUT

When I change the the properties of the Oracle Forms shortcut frmbld.exe so that it "starts in" the folder where my library exists, I no longer get this error, but Oracle Forms "stops working" and aborts.

Attached is a document which visually describes this problem and the steps I have taken thus far.

Thank you.

Doc1.doc