Thank you Andreas and lucamar for your responses.
In order:
* i have checked Project Options and in the Compiler Options window i tried both adding (to the Other unit files" box the built-in template as well as the putting the path to my working project. For the latter, I had to "Import" it, as when i click on the Open Files glyph, the popup window remains unpopulated. However, adding either of htese to the path and then clicking "OK" brings up an error window. See the attachment.
* regarding the Run "Configure Build+Run File": i have tried adding my working directory path to both the Run and Build windows, and then without (default). Since default directory is the current working directory, i didn't expect it to change the behavior of the IDE, and it didn't.
* I have checked the project lpi files with a text editor and found no reference to other directories. I also checked all the XML and cfg files in the Users\...\lazarus/fpc directory and, again, didn't find any reference to older projects of mine. Expected, as it is a new install...
* i tried using fpc -va and got a very long, verbose list which i tried to peruse but didn't see any references to my project directory or files. What should i be searching for?
Before re-installing Lazarus, i first uninstalled it then searched for any leftover file on my drive, including the registry. I deleted these wherever i found them. I then reinstalled Lazarus (same version, 2.0.4) and checked the "delete leftover files" (something like that), and reinstalled all the component packages that i use. On first boot up of the IDE, Lazarus IMMEDIATELY went to my project working directory. How did it find it on the very first run of the IDE?? WHERE is this information being saved? There must be another location that Lazarus keeps this information, but i haven't been able to find it. Is it hidden in the directories? If so, can anyone please tell me where it is so that i can deal with it once and for all?
In any case, if i install a version of my project's EXE into the ew project folder, the IDE seems to be compiling but the old EXE runs. If i delete the old EXE form my working folder, i get the message "No program file ("...my program.EXE" found".
What is causing this behavior? I'm still no closer to understanding it than i was when i first started posting, although i have learned a bit more about the IDE settings.
Still looking for a solution....if anyone has seen this before or understands what's going on, i'd appreciate your input.
Thanks again to lucamar, Andreas and the others that have helped. It's much appreciated.
Cheers