Hi Pham,
Thank you so so much for your patience. And you're absolutely right this is a straightforward installation procedure. I wiped out TELEMAC, left perl and gfortran. Instead of downloading the per-compiled version, I got it via SVN and repeated the procedure, no problems at all. I think the problem is with the systel.ini file in the compiled codes download section. So its working now in perfect order. Thank you very much for your patience.
Regards
Zeinab