I have no idea what does go wrong with your script because i can't see a (syntactical) error and a first test worked for me. I can tell you, though, that you are going in circles.

You "cook up" a file <path> in your first line, which should be a single sed (awk, text-filter-of-your-choice) statement, while it is a whole pipeline of different commands. That could and should be optimized, but let us put that aside for the moment.

After creating file <path> you parse it into an array PATH (which is at least dangerous, because PATH is a special variable to the shell) and then circle through this array writing two new files. What is the array for when you already have the same information in your file?

Code:

grep "ERROR 5" $1 |colrm 1 54 |uniq |tr -d '\r' >path

typeset pathname=""
while read pathname ; do
	echo "${pathname##*\\}" >>file
	echo "${pathname%\\*}" >>folder
done < path

# wrap each string from temp files in double quotes.
sed 's/^/"/; s/$/"/' file >>file.sed
sed 's/^/"/; s/$/"/' folder >>folder.sed

Then you use two sed-invocations to add double quotes. Why don't you add them already in the echo-statements? It is possible to escape characters and use them literally instead of their special meaning to the shell:

Code:

grep "ERROR 5" $1 |colrm 1 54 |uniq |tr -d '\r' >path

typeset pathname=""
while read pathname ; do
	echo "\"${pathname##*\\}\"" >>file
	echo "\"${pathname%\\*}\"" >>folder
done < path

I won't even mention using full-qualified pathnames ("/path/to/file" instead of "file", etc.) inside of scripts because otherwise the result files are going to go wherever the script is called from - ever thought about putting this script in cron? You're guaranteed to have fun.

I hope this helps.

bakunin