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Can you try removing characters like "Ä", "Å" and any other non-standard characters like that from the subprocedure names. The PICAXE compiler doesn't like names containing characters like that.
I tried creating a new program with just a label 'prc_Ä' and nothing else and I got the same error message that you're getting so those characters must be the culprit.
Code:
prc_Ä:
^
Error: Illegal character: ((0xFFFFFFC4))