No, changed mods folder name to MODS, and changed it in jsgme.ini too, jsgme still works, but the generator doesn't. Maybe it reads jsgme.ini to find the mods folder (and second jsgme.ini with mods list), but I did look at the generator exe file with hex editor and found "Mods" folder specified there, so I thought I was onto something, but not (it looks like).
It's either too long name of sh4 folder or some programming issue (but why it decided to manifest itself now and not before).
What double quotation - " ,the one from one of the error messages - means, if anything, in delphi (cause it looks like it was written in delphi), maybe its some wrong usage of it in the code, I don't know
And just in case: one more difference between my current sh4 installation and previous are mods used - TMO before (when report gen was working) and tmo+RSRD now (not working). But it probably doesnt matter in this case.