Before using the visual c++ compiler in console mode, you need to set certain environment variables. The way you do this depends on which operating system you use. I have variously put a call to ..vc/bin/vcvars32.bat  in autoexec.bat, changed the environment variables in windows NT using the control panel/system mode or installed vcvar32.bat in the startup directory. Below is from the V++ help file about this.

CL.EXE, LINK.EXE, and other command-line tools require that certain environment variables be set properly. These include PATH, which must point to the \bin subdirectory of your Visual C++ installation, LIB, which must point to \lib, and INCLUDE, which must point to \include.

When you install Visual C++, setup creates a batch file, VCVARS32.BAT, containing commands to modify the PATH, LIB, and INCLUDE environment variables. If these variables haven't been set properly, run VCVARS32.BAT before you compile at the command prompt. VCVARS32.BAT is located in the \bin subdirectory. Note that you do not need to run VCVARS32.BAT if you are compiling your program inside the development environment.