you're welcome. thanks for letting us know the results.
there is an underlying problem that still exists, however. for some reason %systemroot% is recognized in the cmd.exe window and 'path' appears to be properly defined using %systemroot%, but for some unknown reason does not appear to work until you hard coded the path(C:\windows\system32). I'm not sure where to look to correct this problem.
if this were my PC, I would leave it as it is, since it appears to be working. one thing we did not check was the value of systemroot. from your screen shot, it appears to be defined as c:\windows and worked when you used the cd command. if you are curious enter the following line in a cdm.exe window:
the expected result is c:\windows
should you decide to leave everything as is(again, my recommendation) be aware of any other strange activiy on your PC. it's possible that you've got a bug that may show up with similar symptoms.