OK, this was an engine error, if i ever saw one.
The top function had one less bracket, and the engine didn´t complain at all about a FUNCTION inside a function...
When i placed the bracket, the error changed... meaning that "G" was now recognized as a var.
What gives? I can now have FUNCTIONS inside other functions!?? The error should have been the word ´FUNCTION´ inside the function itself... is that allowed in Lite-C?