[AUCTeX] latex compiling error

[Dr. A.P. BABURAJ]

Hello:
Could anybody help me about this error that I get  when I compile the 
simplest LaTeX file from within Xemacs-AucTeX?
regards
Baburaj

----------------

Emacs  : XEmacs 21.4 (patch 19) "Constant Variable" [Lucid]
(i586-pc-win32) of Sat Jan 28 2006 on VSHELTON-PC2
Package: AUCTeX CVS-1.13 (2005-02-11)

current state:
==============
(setq
 window-system 'mswindows
 LaTeX-version "2e"
 TeX-style-path '("style\\" "auto\\"
                  "c:\\Program 
Files\\XEmacs\\xemacs-packages\\etc\\auctex\\style\\"
"c:\\Program Files\\XEmacs\\xemacs-packages\\etc\\auctex\\auto\\")
 TeX-auto-save t
 TeX-parse-self t
 TeX-master t
 )

-------------------------
this is my latex file

\documentclass[11pt]{article}

\begin{document}
hgdsf
\end{document}

%%% Local Variables:
%%% mode: latex
%%% TeX-master: t
%%% End:
------------------------------------

this is the error

Running `LaTeX' on `junk' with ``%`latex \nonstopmode%' junk.tex''
'%`latex' is not recognized as an internal or external command,
operable program or batch file.

LaTeX exited abnormally with code 1 at Sat Sep 08 12:12:45
---------------------------------------------


the o/p of load path is as follows

c:\Program Files\XEmacs\xemacs-packages\lisp\build\build-report hides
c:\Program Files\XEmacs\XEmacs-21.4.19\lisp\build-report

1 Emacs Lisp load-path shadowing was found

-------------------------------------------


--
A.P.Baburaj,
FMB 207, Fluid Mechanics Lab,
Dept. Of Applied Mechanics, 
IIT Madras 600036.
Tel: 22574065 Fax: 22574052
http://apm.iitm.ac.in/fmlab/raj/index.html