external command not using current directory

What I want is for external commands (“:!”) to run in the current directory.  With “autochdir”, that should be the directory where my file is, right?

 

If I “:cwd”, I get the expected current directory.  If I “!!ls”, I do not get the expected contents of the current directory, rather, the directory two levels up.

 

This is a new machine, and I’m sure my _vimrc is the same as on previous machines.  This on a Windoze 7 Pro machine and I’m running Cygwin. Are there some DOS environment variables, or some other behind the scenes setup that I need to configure?

Thanks,

 

-wis