A Google search on "condor transfer_output_files" turned this up:
"WARNING: Do not specify transfer_output_file in the submit
description
file unless there is a really good reason - it is best to let Condor
figure things out by itself based upon what the job."
This is from the following URL:
http://www.caenn.wisc.edu/manuals/condor6/5_2Release_Notes.html
Does it work if you simply remove the transfer_output_files elements?
Peter
P.S. to any Condor guys reading this, it looks like there's a typo
("transfer_output_file" should be "transfer_output_file"?).