Not sure about the hanging, but regarding the "lib" error, this points
to a likely problem in your console environment and/or compiler
installation.
lib.exe is a microsoft utility for creating static/dynamic libraries,
which should be located in the same directory where cl.exe is located.
When compiling, your PATH variable should be set to point to that
directory.
With the microsoft compiler, you usually get a .bat file called
vcvars32.bat or  similar that you can run in a windows console so that
all the appropiate paths are set for compiling (usually, the microsoft
compiler does not add its append its path to the global PATH
environment settings during installation).