Local folder problem

I programming in c++ and I need help.

I made one program that should run other program, but i got one problem
Program unable to run program if it running directly from other folder.
t.ex.

program located in folder
c:\windows\progs\myprog.exe

I starting it in command line from root C:\

and program showing that path not found

but when i opening c:\windows\progs\ and then running program, so it works.

....
how can I make program to find folder that it was running from. (programs local folder and run other program from this folder)

2 ideas:

a) add called program' path to PATH
b) call "called program" using absolute path (full path). Windows is good but isnt magic; it cant find a program in you disk if you dont give it some tips :)

How can I make my program to identify what folder it was runing from?

I using stdlib.h and system() to run other programs, but do some one know some other way to do it?

CreateProcess
to start one, also other process API's are on this site,
and GetCwd to get the current working directory.

hope this helps ;)