Thanks hudson
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I don't know much about nitrogen but have spent a fair bit of time
packaging CouchDB for Windows which includes erlang of course.
If it helps there are notes here
http://wiki.apache.org/couchdb/Quirks_on_Windows
removing erl.ini from the distribution, or setting it to use a
relative path, should avoid the path dependency issue above.
CouchDB also is packaged with mochiweb so this might be a workable
alternative for nitrogen also. My build notes for this are at
https://github.com/dch/glazier/blob/master/README.md
cygwin is needed to build couchdb, but not to run or distribute it.
I'm currently moving house but if there's interest I could help with
improving the nitrogen packaging as well.
A+
Dave