I wrote:
But does the latex.exe really live in C:\TexLive2005\texmf\miktex\bin and not in C:\TexLive2005\bin\win32 as described in the webpage from above?
I forgot to ask if C:\TexLive2005\texmf\miktex\binwas/is in your PATH variable when you installed TeXLive. If not what TeXLive stuff is in your PATH.
thanks and regards Uwe