Karl,
The logic of the file location is from otvdm, not me. If you run a 16-bit installer that modifies autoexec.bat, this is the file that gets modified, because otvdm tricks the 16-bit installer to use it. I don’t run the 16-bit installer, so I modify or create the file before launching XyWin.
There was a report that someone’s copy of XyWin wasn’t reading the path from autoexec.bat, so I added the PATH16 variable which otvdm also uses. The idea is that if autoexec doesn’t work, then PATH16 will. It’s pure redundancy, to avoid odd problems, and does no harm. If the speller worked because the PATH16 variable was present, then autoexec.bat won’t change anything; and vice versa: if autoexec works, then PATH16 won’t change anything.
Later I’ll add an uninstaller that will clear these things if you uninstall XyWin.
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Mistyped from a phone. Please forgive typos and brevity.