Fairly trivial bug, and extremely easy to work around.
When I invoke the Windows command prompt and set the PATH up for D, I use 'set PATH=%PATH%;c:\dmd\bin', which is reasonable enough. However, when using DSSS I have some errors:
DSSS informs me that dmd is not in $PATH. rebuild returns an error status when invoked through DSSS. By itself, rebuild informs me that it cannot determine installed location.
Problem: my PATH contained an empty entry, of the form: "system_paths;;c:\dmd\bin".
Reason: A semi-colon is present at the end of the PATH prior to adding DMD to to it, and thus the command used above adds the extra semi-colon, which creates an empty entry which causes the problem. This extraneous semi-colon was added by Windows because my user had a custom PATH that was empty, probably an artifact left over from some uninstalled program. Windows concatenates the user's PATH with the system PATH with a semi-colon in between, and thus the trailing semi-colon was added to my effective PATH.
Quickie-fix: Delete the offending blank PATH entry for the user.