Did you select 240x240 resolution on project settings?
Try this and use an empty project (write just the onmainloop event).
I haven't a real square pocketpc to test it, but for me it worked successfully on emulators...
Here attached you can find some screenshoots:
FBA running a square 240x240 projectAttachment:
fbafull.jpg [ 106.46 KiB | Viewed 13876 times ]
Native ARM FBA Project created for square PPC, running on square ppc 240x240 emulatorAttachment:
emulator.jpg [ 28.31 KiB | Viewed 13861 times ]
FBA settings for square ppc 240x240Attachment:
fbasettings.jpg [ 38.31 KiB | Viewed 13874 times ]