I'm not a shader programmer, but I think technique should be inside effect:

Code:
MATERIAL* mtl_PostProcess={
effect="

texture TargetMap; 

sampler mySampler = sampler_state{texture=<TargetMap>;};

float4 PP_Shader (float2 Tex: TEXCOORD0):Color0
{
	float4 Color;
	Color=tex2D(mySampler,Tex.xy);
	return Color;
}
technique PP
{
pass p1
	{
	PixelShader= compile ps_1_0 PP_Shader();
	VertexShader=null;
	}
}

";
}

VIEW* postprocess={
	material=mtl_PostProcess;
	flags=PROCESS_TARGET;
}




3D Gamestudio A8 Pro
AMD FX 8350 4.00 Ghz
16GB RAM
Gigabyte GeForce GTX 960 4GB