Three problems with DO

These happen in both 9.02.154 and 10.00.31.

Here's a little batfile:

v:\> type dosdtest.btm

MD dosd dosd\1 dosd\2
TOUCH /c dosd\0.txt dosd\1\1.txt dosd\2\2.txt
DO file IN /d"dosd" /s *.txt
ECHO %@FULL[%file]

Here's what I get when I run it:

v:\> dosdtest.btm
2009-01-12 20:17:21.867 V:\dosd\0.txt
2009-01-12 20:17:21.867 V:\dosd\1\1.txt
2009-01-12 20:17:21.867 V:\dosd\2\2.txt
TCC: (Sys) V:\dosdtest.btm [5] The system cannot find the path specified.

Three problems:

1. Although I said the start dir for /s was "dosd" it started in v:\, the current directory (proceeding to the subdirectories of "dosd" and not processing the files in "dosd").

2. It couldn't find the file dosd\2\2.txt (it was created).

3. At this point (after running the batfile) with the current directory still v:\
I cannot, with Explorer, delete the "dosd\" tree because it (something) is in use by another process.