SQL precompile failed. SQL9001 received by C at 1200. (C D I R)

Hello all,

I'm in a fix. Somehow my SQLRPGLE programs are refusing to compile giving
the above error. Anyone have any ideas what could be wrong. I'm sure there
is some parameter missing but I can't seem to find it. To make things
worse these exact same programs are compiling fine in another machine with
exactly the same compilation parameters. We are on V5R4.

The message on the message line is :
Member SPM100 file QSQLPRE in QTEMP not found.

The file does exist in QTEMP and also has the correct source program.
Object Type Attribute Text
QSQLPRE *FILE PF-SRC LOADING

I have got nested /COPY statements which is why I have the following
parameter:

RPG preprocessor options . . . . *LVL2

Here is the joblog:
Member SPM100 file QSQLPRE in QTEMP changed.
Diagnostic check of source is complete. Highest severity is 00.
File QRPGLESRC in library SPMSRC member SPM100 already open or has an
error.
Member SPM100 file QSQLPRE in QTEMP not found.
SQL precompile failed.
Function check. SQL9001 unmonitored by C at statement 1200, instruction
X'0028'.
SQL9001 received by C at 1200. (C D I R)


Any ideas ???

Thanks & best regards
Ewart