>1. I am NOT talking about dumping VFP query results into Excel. I'm talking about creating a pivot-table where the user can quickly change simple criteria and refilter the data from within Excel and see the new data in the pivot-table instantly.
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Here's a UT magazine article:
http://www.utmag.com/wconnect/wc.dll?9,7,10,1588

Theres also some more info from Microsoft on the VFP Excel Foundation class:
http://msdn.microsoft.com/library/default.asp?url=/library/en-us/dv_foxhelp/html/ffcpivottable_object.asp

The first article might be very helpful.