PowerShell 2.0 and “The term 'Param' is not recognized as the name of a cmdlet, function, script file, or operable program”

Question

I am running Windows 7 RTM. PowerShell 2.0 is installed by default. I am using the excellent Windows PowerShell ISE to edit my scripts. I have the following script:

Answer 1

Also had this "kind" of problem, but I couldn`t run any of my ps1 scripts. Solution: Change encoding from UTF-8 (or which you have) to ANSI. Perhaps it will help someone too.