.mhonarc.mrc corrupts @INC?

Hello,
  I'm installing MHonaArc and it looks great. I got past the quick start, 
but now I'm having real trouble with the default resource file.

  If I put .mhonarc.mrc in 
/usr/local/lib/perl5/site_perl/5.6.1 with only a few suggestions from the 
rcfile man page example as follows:

<!-- MHonArc resource file
  -->
<SORT>
<TITLE>
MHonArc test
</TITLE>

<TTITLE>
MHonArc test (by thread)
</TTITLE>

the when I run mhonarc, I get the following output and it fails to run. 
(If i remove the .mhonarc.mrc file, mhonarc runs fine):

This is MHonArc v2.5.2, Perl 5.006001 linux
Reading resource file: /usr/local/lib/perl5/site_perl/5.6.1/.mhonarc.mrc 
...

Can't locate readmail.pl in @INC (@INC contains: lib 
/usr/local/lib/perl5/site_perl/5.6.1/i686-linux </TTITLE>
 /usr/local/lib/perl5/5.6.1/i686-linux /usr/local/lib/perl5/5.6.1 
/usr/local/lib/perl5/site_perl .) at 
/usr/local/lib/perl5/site_perl/5.6.1/mhopt.pl line 443.

** It looks like somehow the existence of .mhonarc.mrc is causing part of 
that file to be included in the @INC array in PERL

Any suggestions? I'd really appreciate it.

Thanks!
  Brian