I believe this is the cause of my problem (mention above) because your step 2 process never gets to:
if ( $step == "2" ) {
ini_set("max_execution_time", 0);
$skip_exheader = "yes";
require "pp-inc.php";
print "{$output}Preparing to move files...<p>";
and it seems as though a lot of people have problem with this function since there are a lot for threads on forum referencing problems with that function.
my guess is that your newer code is looking for something a little different in the names since it can't seems to find it's way to the classifieds/forums directory to find the php code that contains that function