Eddie,
I went back to re-read your original posting. There are at least two different questions posed, and I apologize if I took it off of the actual topic.
The one that refers to FTN95.CHM and path names has nothing to do with Resource Files that are tied to a compiled program. The HELP file is a separate entity, with it's own syntax requirements, BEFORE you run it through the program that actually builds the HELP file that you see as FTN95.CHM.
Since SRC is a C-Compiler 'variant', it is quite possible that some of the syntax held over (Paul could comment on that, I'm guessing) for how file names and paths are handled syntactically.
In 'C', if you specify a file name in <> brackets, it is a global (aka system) filename. One uses this for #include's for system declarations, as an example. if the file name is enclosed in double quotes, the file is assumed to be local to the current working directory or uses one of the specified paths supplied on the command line or an environment string. S
So, maybe, with only a file name present, the SRC resource compiler looks-for/compiles-for one place for the file, and if in double quotes, it looks elsewhere. Or, if the full path name is specified, it looks specifically at one place only.
And, it is possible, since you can bind resources at run-time, that all that exists in the compiled code are resources that can be found, and if not found are only references to external resources that would not likely be found on a user's system.
Not knowing exactly how a resource file is constructed, I'm only guessing, but it is logical guessing!
Bill