3) error running on WindowsXP/IIS Perl 5.7.3
Perl 5.7.3 is not a production release, so its is hardly surprising you are experiencing problems. Currently perl is at 5.8.8 with the development version being 5.9.3 (or is it 5.9.4?) so 5.7.3 is pretty old, and most likely unstable. Unless you are experimenting you should not be using any odd numbered minor release (the second number) higher than 6. Upgrade to a production worth release like 5.8.8 and no doubt this problem will go away.
Also, youll find that if you adjust your approach youll get better responses, we generally dislike people calling Perl "PERL" and asking such a vague question isnt going to get you far. By providing the minimal additional information you did here I was able to identify the cause of your problem. Doing so in the first place would have saved you and others from wasted time.
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$world=~s/war/peace/g
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