Hey DuskTrader,
I've come across the error number (060) a few times, but for a different reason (memory fragmented).
You could try restarting Zorro, to see if memory fragmentation is causing the problem, but if that doesn't work, try trimming things down to the barest minimum to test if the for loop works. It won't really help with your full system, though

I did a quick search of the Zorro help file, but found no mention of the maximum memory that Zorro can use

I reckon JCL would know how to avoid the problem, though.