You might see this error when you first install a copy of Delphi on your machine. If you try to run Chameleon to recompile the custom Delphi components without first running Delphi, Chameleon will not be able to discover the location of the Borland Delphi command line compiler dcc32.exe.

The resolution of the problem is to simply run Delphi before running Chameleon.