Your batch file doesn't semm right to me. Try

echo %1 %2 %3
pause
"%1" delete "EMPS"
"%2" EMPS "%3"

>For extra credit (like you need any) why would I get an error that the RUN command failed because the parameter is incorrect?
>
>

>RUN EMPS_Install.bat "&scFilename" "&instsrvFilename" "&srvanyFilename"
>

>
>The parameters evaluate to basically "c:\MyPath\MyFile" for each one. They are valid paths/files. This worked before I added the %1 paramemeter (and renamed 1 and 2 to 2 and 3 repectively) in order to run the delete command.
>
>This is the batch file:
>
>

>echo %~f1 %~f2 %~f3
>pause
>"%~f1" delete "EMPS"
>"%~f2" EMPS "%~f3"
>