Hi Viswanathan,
I apologize I couldn't respond to your email sooner. I'm in a tough spot this week and it's very difficult to carve out time to reply to PTC Community messages. I did take a look at your launch script.
First... this is the worst launch script in history. It doesn't actually do anything. I'm just giving you a hard time- I know it's not your script. 
Your problem is actually not that difficult. You're setting a variable to the place where Creo lives- and then running the parametric.exe file from that location. That means your error is either in the setting of the variable... or the call statement. In this case, I think you've set the variable incorrectly. On your last file, you added a backslash to your variable name and then repeat it in your call statement. This alone will stop the script from working.
Just to make sure there's not something else going on... let's just comment out the variable line and make a new call statement that includes everything. If it runs with this modification, then it should run with the variable corrected. Try this for the script:
@echo off
:: Set Environment Variables
:: set proe_load_point="C:\Program Files\PTC\Creo 1.0\"
:: Launch Pro/ENGINEER
call "C:\Program Files\PTC\Creo 1.0\Parametric\bin\Parametric.exe"
@echo on
exit
Note that only the bold line is actually doing anything. If you try it, does this work? If so, your problem is in the variable as I suggested above. If not then maybe there's something else going on. Let us know what happens...
Thanks!
-Brian