Compiler: Error[Pe1696]: cannot open source file with IAR

Unfortunately, you have asked your question in the wrong place.  In this forum, we only support compilers released by TI.  I suggest you visit the web site for IAR tools and see what support is available.

All that said, I can shed a little light.  You need to show the exact error message the compiler emits.  It is probably similar to "Cannot find include file something.h".  If that is the case ... There is no simple and easy solution.  First, you find where something.h is located.  Then add that directory to the include paths searched by the compiler.  I don't know anything about the build environment from IAR.  But it is a good bet you can create your own build variable to use in place of the repeated pattern $PROJ_DIR$\..\..\..\..\  .

Thanks and regards,

-George