I use batch files for different build types and everything works with no problem. Both with redirection to file and without it. In your case you should probably let MEW to capture output and don’t redirect in batch files. I’d recommend the same as Wayne: start with simple batches which echo something and try to make capture working. One of my settings is below.
BTW, build.log seems suspicious. Are you using MS DDK? If so, it is exactly what I use and maybe can help.
As for Ctrl-G, I use it for GotoLine macro with no problem. You probably have something else assigned to this hotkey. Command map warns about duplicate assignment when you change a hotkey (and press OK for command settings dialog). For assignment checking you can use KeyTest^Find_Assign macro which is probably mapped to Alt-K.