PowerShell conflicts with PDS 7.1 (specifically PWB 1.1)

I am posting this for the benefit of those who might run into this
situation. I am using PDS 7.1, which includes PWB 1.10, in Windows
XP. At some point a week ago I started experiencing an unexpected
problem: When running PWB and selecting any Build or Compile option,
the program "crashes", by failing silently and exiting to DOS. The
PWB window is visible with the prompt on top. This is the similar
symptom described by a Microsoft KB article for the situation were the
TMP environment variable is set to the root of a drive and not a path.
Reference this URL: http://support.microsoft.com/kb/66309

After racking my memory to think of what I had changed on my system
(since copying over my development directories and projects to another
machine resulted in error free operation), I remember I had installed
Windows PowerShell 1.0 to play with. After uninstalling PowerShell,
PWB once again compiles/builds from the IDE without error. This is
not an issue if I use nmake and makefiles to compile from the command
line.

Anjo