Ok I seemed to have solved this. I think that I did something silly in the beginning, not sure what though.

This is what works:

Open Visual Studio command prompt and run
configure -xplatform (myplatform listed in the readme)
When that completes
cd bin
setcepaths (myplatform listed in the readme)
nmake

This is pretty much what the INSTALL text file says you must do. I think that at least one of my problems was that I was setting up the LIB and PATH variables instead of running setcepaths.

It is compiling at the moment. Hope this works.