This is all on the same computer. I am not relying on my PATH to run perl and I am just copying perl.exe and the perl56.dll. I ran dependency walker and that is the only dynamically linked non-OS library linked in perl.exe.
I was always under the impression that the @INC variable is fixed once you compile perl.exe but there was on thread here that mentioned it seems to be somewhat dynamic but not in the way I'm finding out. That thread seemed to indicate that moving perl.exe around would result in @INC being adjusted so the directories it contains have their path adjusted accordingly.