in reply to XML::Simple and use lib

A shot in the dark, but what I would try:
What if you start your program like this?
BEGIN { push (@INC, "/www/htdocs/v028502/cgi-bin/Modules/"); }
Maybe XML::Simple is itself looking for something in the directory you defined in the 'use lib' line? Try throwing that directory in the @INC too, can't hurt.