The error from basic probably reflects that it's a port from OS, which would have had a DD card to map the PDP000HD file. I don't know about this implementation of basic, or its use of this the particular file, but given that output is broken I'd try something like:
FILEDEF PDP000HD TERM (LRECL 80 RECFM? V
Of course if it's supposed to mapped to a scratch disk file that won't help. I'm not able to test this right now, but it's worth a try.
