[OS X TeX] verbatim problems

[George Gratzer]

Trying to typeset by LaTeX book, starting with Chapter 15 (the BiBTeX  
chapter), I get error messages

!Missing $ inserted.
<inserted text>
                $
l.712    Algebra",^^M

The reference always is to a verbatim environment, in this case:

\begin{verbatim}
@PROCEEDINGS{UA69,
    title = "Proceedings of the Conference on Universal Algebra",
    booktitle = "Proceedings of the Conference on Universal
      Algebra",
    address = "Kingston, ON",
    publisher = "Canadian Mathematical Society",
    editor = "G. H. Birnbaum",
    volume = 7,
    year = 1970,
    }
\end{verbatim}

Another example (from the Books in LaTeX chapter):

!Missing $ inserted.
<inserted text>
                $
l.954 ...chapters\dirsep book}% writing books,^^M

The verbatim environment in this case is:

\begin{verbatim}
% Math into LaTeX, third edition master document
\documentclass[leqno]{book}
\usepackage{LaTeXB3}
\makeindex

% For Macintosh:
\newcommand{\dirsep}{:}
\newcommand{\dirprefix}{:}
% For Unix
%\newcommand{\dirprefix}{}
%\newcommand{\dirsep}{/}

\includeonly{
%\dirprefix chapters\dirsep fm,% Front matter
%\dirprefix chapters\dirsep qf,% Quick Finder
%\dirprefix chapters\dirsep pr,% Preface
%\dirprefix chapters\dirsep intro,% Introduction
%\dirprefix chapters\dirsep sc,% Short course, Ch. 1
%\dirprefix chapters\dirsep tx,% text, Ch. 2
%\dirprefix chapters\dirsep dt,% displayed text, Ch. 3
%\dirprefix chapters\dirsep m,% math, Ch. 4
%\dirprefix chapters\dirsep mm,% multiline math, Ch. 5
%\dirprefix chapters\dirsep ld,% LaTeX docs and LaTeX,
                                % Chs. 6 and 7
%\dirprefix chapters\dirsep amsp,% AMS packages, Ch. 8
%\dirprefix chapters\dirsep cust,% customizing LaTeX, Ch. 9
%\dirprefix chapters\dirsep long,% BibTeX and Makeindex,
                                  % Chs. 10 and 11
\dirprefix chapters\dirsep book,% writing books, Ch. 12
%\dirprefix chapters\dirsep web,% Web, Chs. 13 and 14
%\dirprefix chapters\dirsep apt,% tables, Appendices A and B
%\dirprefix chapters\dirsep apo,% Appendices C-G
                                 % and bibliography
}

\begin{document}
\frontmatter
\include{\dirprefix chapters\dirsep fm}%Front matter
\shorttableofcontents
\tableofcontents
\listoftables
\listoffigures

\include{\dirprefix chapters\dirsep qf}% Quick Finder
\include{\dirprefix chapters\dirsep pr}% Preface
\include{\dirprefix chapters\dirsep intro}% Introduction

\mainmatter
\include{\dirprefix chapters\dirsep sc}% Short course, Ch. 1
\include{\dirprefix chapters\dirsep tx}% text, Ch. 2
\include{\dirprefix chapters\dirsep dt}% displayed text, Ch. 3
\include{\dirprefix chapters\dirsep m}% math, Ch. 4
\include{\dirprefix chapters\dirsep mm}% multiline math, Ch. 5
\include{\dirprefix chapters\dirsep ld}% LaTeX docs and LaTeX,
                                        % Chs. 6 and 7
\include{\dirprefix chapters\dirsep amsp}% AMS packages, Ch. 8
\include{\dirprefix chapters\dirsep cust}% customizing LaTeX,
                                          % Ch. 9
\include{\dirprefix chapters\dirsep long}% BibTeX and Makeindex,
                                          % Chs. 10 and 11
\include{\dirprefix chapters\dirsep book}% writing books,
                                          % Ch. 12
\include{\dirprefix chapters\dirsep web}% Web,
                                         % Chs. 13 and 14

\appendix
\include{\dirprefix chapters\dirsep apt}% tables,
                                         % Appendices A and B
\include{\dirprefix chapters\dirsep apo}% Appendices C-G
                                         % and bibliography

\backmatter
\renewcommand{\indexname}{Index}
\printindex
\end{document}
\end{verbatim}

It goes without saying that there are hundreds of verbatim  
environments preceding these.

These chapters typeset without any problem in Textures.

I am using TeXShop 2.09b and the installation dated June 8, 2006.

I am really stuck. Any help would be appreciated.


------------------------- Info --------------------------
Mac-TeX Website: http://www.esm.psu.edu/mac-tex/
          & FAQ: http://latex.yauh.de/faq/
TeX FAQ: http://www.tex.ac.uk/faq
List Archive: http://tug.org/pipermail/macostex-archives/