Problem solved, I appreciate the fast reponses. Here are some interesting points: There were 6 responses. Half said text_dir\text\resource, the other half insisted the language be added, like text_dir\text\usascii\resource. For me I had to go with text_dir\text\usascii\resource to get it to work. Without the usascii it just wouldn't work. It could be a release\version issue. I'm using 2001, 2002350.
Funny thing is, that if I copy my .res file to my loadpoint\text\resource which is where I currently have the pro_directory set to, it finds and uses the res located there first. If I remove it from there, it finds it in text_dir/text/usascii/resource. This is not whats documented for the pro_directory variable, but its what happens for me. I stumbled across this because I named my test .res file confirm.res which exists in your loadpoint/text/resource by default. I was suprised to see a different dialog pop up other than the one I had made and had to figure out where it was coming from.