I did more testing, and found that the path is getting truncated after
"/bin:/usr". My .tcshrc looked like so:
     set path = ( /bin ) 
     set path = ( $path /usr/bin )
     set path = ( $path /usr/local/bin )
     set path = ( $path . )
     set path = ( $path /scripts )

Then I added a few lines, and it still truncated at the same spot:
     set path = ( /bin ) 
     set path = ( $path /test1/usr ) 
     set path = ( $path /test1/usr/test2 ) 
     set path = ( $path /usr/bin )
     set path = ( $path /usr/local/bin )
     set path = ( $path . )
     set path = ( $path /scripts )

Gave this after executing the script:
     PATH=/bin:/test1/usr:/test1/usr/test2:/usr

However, it does not seem to truncate at all if put /usr as the first
one:
     set path = ( /usr ) 
     set path = ( $path /bin ) 
     set path = ( $path /usr/bin )
     set path = ( $path /usr/local/bin )
     set path = ( $path . )
     set path = ( $path /scripts )

I really don't understand this at all.