What I am trying to say is quite simple.
It does not appear to matter what the CMD Shell errorlevel is with XCOPY or ROBOCOPY, Successful or not, when the shell exits at the end of the command KIX is still saying @error = 0 so no kix error handling would ever get invoked.
If I cant pass codes back to KIX then I am going to have to generate temporary CMD scripts on the fly from/by KIX which handle all issues within the shell then exit to KIX which would then delete the temp CMD script before it loops etc.

wkix32 4.53.0.0 on XPP sp3