Thanks for your (super quick) help, Mark--you've resolved my issue!
You are also correct that the eval button was not enabled prior to the second screenshot.
I changed the OUT line back to the original "OUT=out",
and then built and tested the Not chip in the Project 1 folder. My Nand gate is now returning the correct value.
Just out of curiosity I changed the OUT back to "output" to see what impact that was having on my reported issue. The Nand gate returned the correct output value, but testing the script resulted in an "Unknown variable: out" error. Good to know.
Thanks again.