Error compiling on Codeblocks/MS VC++ toolkit 2003

I'm trying to compile Torque using Codeblocks and the Microsoft Visual C++ Toolkit 2003. I imported the VC7 solution workspace, had to change a few build options. Everything works fine for a while, until I run into the error:

Execution of 'rc.exe -fo..\engine\out.VC6.RELEASE\vc7\TorqueDemo.res TorqueDemo.rc' in 'C:\Torque\torque\vc7' failed.

That little line is a bit beyond my experience, so I'd appreciate any help you can throw my way in fixing it.