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Hi there, 

I'm having the exact same issue and have followed the exact same steps. Scripts is turned on, the files are copied into the folder, when I click the button I get an avi render and nothing else. However, I DO have a squidy.bat file.

I don't know if a solution has already been found but hopefully this helps. 

it looks like you have special characters in the path. Parentheses are probably choking the script.

Could be it! I was saving to Dropbox so that makes sense. I'll give it a shot. Thanks!