So I take it that the Model_M4_x1 folder is your M4 runtime, and that folder resides inside the Runtime folder that is in GPHX Library II? If so, the path would be GPHX LIBRARY II->Runtime->Model_M4_x1->Runtime etc, etc, yes? I think that may cause a problem if it is as I believe Poser only expects runtime to appear once in the path, and that may affect both Poser and/or where the .bat file is looking. Remove the M4 runtime form Poser, and then try temporarily moving the M4 folder outside of the topmost runtime folder and try initialising again, then add it to Poser to see if that makes a difference.