|Yeah, that was a good catch. I googled that file name and this was one of the hits:|
It talks of problems running commands in Visual C++. The problem traces to the default.pif for the msdos prompt, especially running it from full screen or command prompt box. Conagent.exe apparently is the file that holds the configuration for the prompt.
I remembered quite awhile ago having similar problems with batch files that wouldn't run right from the box but did OK from full screen. I don't think I ever found a fix but I usually used full screen for anything dos-related anyway. The link jogged my memory of that and maybe it's related to your problem.
The link tells how to reset conagent.exe and/or change the msdos pif.