You are correct. I was running the wrong script like a dummy.
http://www.lispworks.com/documentation/lw50/CLHS/Body/m_defpar.htm
defparameter and defvar establish name as a dynamic variable.
http://www.lispworks.com/documentation/lw50/CLHS/Body/m_setf_.htm
setf changes the value of place to be newvalue.
When you use setf you are specifically requesting that dynamic scoping not be used. Common Lisp gives us the choice, aka freedom from lexical tyranny.