The file that you specify on the command line, such as in
fpc foo.pp
|
will be looked for ONLY in the current directory. If you specify a directory in the filename, then the compiler will look in that directory:
fpc subdir/foo.pp
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will look for foo.pp in the subdirectory subdir of the current directory.
Under case sensitive file systems (such as linux and unix), the name of this file is case sensitive, under other operating systems (such as dos, Windows NT, os/2) this is not the case.