[OS X Emacs] 1.4 to 1.5 upgrade, can not find Tex distribution

["Edward M. Roche (江戸浪士)"]

I changed from 1.4 to 1.5 and Aquamacs could no longer find the Tex  
distribution. Am using TexLive 2007. Upgraded to TexLive 2008, but  
still Aquamacs does not find it. TexShop works fine, so I'm sure the  
distribution there.
In Aquamacs, when in Latex-mode, entering the command cntrl-c cntrl-c  
yield an error: base can not run pdflatex.

I was able to call back 1.4 from my archive after deleting 1.5. 1.4  
works fine.
If anyone knows about this, please let me know. Perhaps it is a  
setting or preference or something in Aquamacs?