For example: When I load GPS_MTK_test.pde which is
Arduino sketch files with 1.0 have the extension .ino. All libraries that come with examples for Arduino 1.0 use the .ino extension.
Where did you get this non-1.0 compatible sketch?
I get some errors:
processing.app.SketchException: unexpected char 'i'
at processing.mode.java.JavaBuild.preprocess(JavaBuild.java:353)
at processing.mode.java.JavaBuild.preprocess(JavaBuild.java:197)
and many more
That's an Arduino sketch. It would be very surprising if Processing did compile it.