The SAGA or is it Soap Opera Continues

Hi

I hope someone has an answer.
I am having problems compiling modular programs that use embedded SQL.

I have begged, cajoled, pleaded and bullied programmers to use WDSCi.
Why, they asked, we can Edit Code with SEU more quickly than with WDSCi.
As reasons I extolled the increased productivity, modular code, reusable
code that results.
I have even convinced my management to stump up $2K per coder for the whiz
bang latest and greatest RDi.
I cited the improved productivity of the coders, and that we may even reduce
programmer costs.

Well it is time to pay the piper. Management wants the increased
productivity/cost savings.
I have NOT delivered.
I have set up reusable modules and designed service routines but guess what
I have also taken up the 'SQL is the Way' crusade.
For the life of me I CANNOT get the reusable RPG modules that ALSO use
embedded SQL to compile.
Precomplier insists that Host variables are unique EVEN ACROSS MODULES.
Worse yet Precompiler rejects LOCAL Host Variables as UNUSABLE.
AAAAAARRRRRGGGGHHH!!!
The SEU'ers call me Don Frank, thanks IBM, I am now a laughing stock.

The WDSCi verifier is worse than useless with the modular/SQL code.
I use PDM/SEU for all my compilations. I need to eat crow every time I do a
compile.

I dont think I am the only one with this problem, I see many references on
the net to a change
done to the 'beloved by me[sic];' SQL RPG precompiler at V5R3.

Has anyone found the way and enlighten me, I would be eternally thankful.
Perhaps then I need not consider taking up the 'way of the samurai'.

We are on V5R4, WDSCi V6.