It works!!
As Wiz said I was too close !!!
Code:
.R PAL8
*PNEW1<PNEW1.PA/K
ERRORS DETECTED: 0
LINKS GENERATED: 162
.DIR
11/17/96
ABSLDR.SV 5 06/01/93 LIBSET.SV 5 07/05/93 PMD .PB 30 02/15/92
..
TDCOPY.SV 7 07/05/93 P .SV 122 02/15/92 PANEW .PA 361 11/17/92
TECO .SV 22 PASCAL.PB 161 02/15/92 PNEW1 .PA 361 11/17/92
FORT .SV 25 07/05/93 PASCAL.TX 15 02/15/92 PNEW1 .BN 61 11/17/96
LIB8 .RL 29 07/05/93
82 FILES IN 2237 BLOCKS - 955 FREE BLOCKS
.
The file PNEW1.BN (PASCAL.BN) has been created as of today

It took 15 seconds here. Intensive work with disk.
The original 8/E did it in 75secs. Thus is seems our disk subsystem is set slow
What was the problem: PAL8 does not like Linux line endings in the source, it must be Windows like CRLF

Update: attached you may find the listing from PAL8 assembler - 12450 lines, I cannot imagine how long would it take to print out all the pages on a teletype

The listing itself takes 960 blocks of disk, therefore you have to do it on an a freshly zeroed disk.
Still not sure what this mean:
Code:
ERRORS DETECTED: 0
LINKS GENERATED: 162
My current understanding is it is a kind of information - 162 links have been created. When reading the 499 pages long DEC OS/8 Handbook, one can deduct it is not an error condition or warning. In the listing I cannot find any error messages there.
What are the LINKS:
Quote:
5.12 LINK GENERATION AND STORAGE
In addition to handling symbolic addressing on the current page of memory,
PAL8 automatically "links" for off-page references.
..
In the listing, the octal code for the instruction will be followed by
a single quote (') to indicate that a link was generated..
..
NOTE: The option /E makes link generation a condition that produces the LG (Link Generated) error message..
So I think it says the switch /E forces to print out such links "as an error message". When I run PAL8 with /E switch it prints out a list of 162 by LG marked instructions.
On the other hand, many places on the web with PAL8 list the "LG" among the errors..
For example in below listing chunk are the links visible:
Code:
02502 7100 CLL
02503 4771' JMS MUL10
02504 1032 TAD BCD
02505 3053 DCA OP3
02506 3052 DCA OP2
02507 3051 DCA OP1
02510 4770' JMS BADD
02511 2046 ISZ DC