When a program is run under GDB, you can't pass arguments to it.
Neither ``run args-list'' nor ``set args args-list'', then ``run''
work.  In any of these cases, the debuggee gets argc = 1 and
argv[0] = c:/whatever/gdb.exe.  It seems there is a bug in the
start-up code which prevents the correct arguments to be passed
to the debugged program.

I only saw this under GDB, but Charles Sandmann reports it also happens
under any other debugger.

Currently this means some programs can only be debugged by hard-wiring
the arguments into the program's source (yuck!).

argc and argv[1] up are set properly in edebug and fsdb, only argv[0]
is set wrong for those debuggers.
In debug/common/v2load.c the loading program's environment block is
shared with the loaded program, which causes argv0 to be incorrect,
and none of the 32-bit environment variables to be passed.  The fix
is to either create a new 16-bit environment block and set it 
correctly (much of this could be borrowed from the exec code - maybe
make it common code?).
GDB has additional problems in that the "set arg" type functionality
must modify the command line tail in the pseudo-PSP set up for the
program.  I don't know for sure, but I don't think this is currently
coded at all.

The solution in this case was to (1) modify the debug library to support
argv[0] and environments, and (2) modify gdb to use the debug library correctly.
This means that you can use "set env" in gdb, and "run args ..." to run the
program.