When I go through the steps specified by JamesNC in his original post, everything works fine for me with VC++ 7.0.
You'll notice in the output you provided that there's a cl command that gets run, followed by a link command. But, in between the running of those 2 commands, there ought to be the message "Running Mkbootstrap for simple ()", followed by the execution of a couple of perl commands. At least, that's what happens for me and, given the nature of the error message, I suspect it's relevant to the error itself.

However, I don't know what's causing this.
Does the same thing happen when you try to build real perl extensions from CPAN (eg Math::FFT) ?
Which version of perl do you have ?
Which version of ExtUtils::MakeMaker do you have ?
Was changing the name of the module from "myModule" to "simple" the *only* thing you did differently to JamesNC ?

Cheers,
Rob