Hi Alfred,
As promised:
I found the problem was historical: the shortcut to the bat file used to launch AutoCAD 2004 was in fact a .pif file, probably inherited from earlier days.
It was copied and modified to launch AutoCAD 2008 and worked without any problems, but it failed to work on AutoCAD 2012. The reasons are unclear at this time, as Microsoft says .pif files should work under XP.
Anyway, replacing the .pif with a regular shortcut to the .bat file solved the problem.
There remain, though, a few minor unclear items:
1. If we use the the 8.3 DOS format ("C:\Progra~1\...") to launch Acad (in the batch file), any form of the LAYER command is command line only, we can't launch the dialog; this does not happen if we use the full quoted path ("C:\Program Files\...") to launch Acad.
2. No matter how we launch Acad, after we Open a drawing the crosshairs freeze (or sometimes are missing alltogether) and only a REGEN (from the menu - the command line is frozen too) restores the input system to normal. This does not happen on the initial drawing (Drawing1) or on any subsequent drawings (after performing the Regen on the first drawing opened).
It seems that AutoCAD does not perform the usual Regen after opening the first drawing and waits for the user to do it.
Thus, there is no more need to use a .NET program to launch Acad, the batch file approach works well enough, the plug-ins load ok, etc.
Of course the whole exercise raised some questions which remain unanswered.
Maybe some Autodesk guru will care to comment on this.
Regards,
alex