With gamecycle.lua and elminatio.lua int he same directory, and using dofile(), I get that error. However, when I change it to loadfile(), I no longer get a "no such file or directory" error. However:
Previously when Think() ran, it said that it had a problem trying to call a nil value, with no additional details.
Now it throws an error when calling think(): 'attempt to call global TestFunc: a nil value'. So that says to me that loadfile() may still be failing, but silently. This happens when gamecycle.lua is in the other two directories you named as well.