two strange issues

[address@hidden]

Admittedly, it's been a while since I've had any kind of LilyPond project and 
I'm likely rusty but this is really puzzling me.

Input file:

%%%%%%%%%%%%
\version "2.18.2"

definition = \relative c, {
  \key c
  \time 4/4
  c1
}


\score {
  \relative c, {
    \clef F
    \transpose c es \definition
  }
}
%%%%%%%%%%%%

First weird thing is the following error message regarding the time signature:

***************************
Starting lilypond-windows.exe 2.18.2 [file.ly]...
Processing `D:/SkyDrive/lily/file.ly'
Parsing...
D:/SkyDrive/lily/file.ly:6:3: error: wrong type for argument 2.  Expecting 
list, found (make-music (quote TimeSignatureMusic) (quote beat-structure) 
(quote ()) (quote denominator) 4 (quote numerator) 4)
  
  \time 4/4

Interpreting music...
Preprocessing graphical objects...
Finding the ideal number of pages...
Fitting music on 1 page...
Drawing systems...
Layout output to `file.ps'...
Converting to `./file.pdf'...
fatal error: failed files: "D:/SkyDrive/lily/file.ly"
Exited with return code 1.
***************************


The second weird thing is that, while '\transpose' does output an Eb rather 
than a C, the key signature is not changed to Eb major.  Maybe there are three 
strange things going on as I do get output.

Am I doing something exceptionally ignorant?

-David