>>F....k,
>>PACK?
>>
>>
>>Did you try to delete ALL files in current user TEMP folder?
>>What happens if you use something like that, instead of PACK (only for testing)
>>

>>USE ... EXCLUSIVE
>>COPY TO TestMePack FOR NOT DELETED()
>>ZAP
>>APPEND FROM TestMePack
>>ERASE TestMePack.*
>>

>
>Is VFP attempting to utilize a temp folder somewhere? For security reasons, we no longer have admin rights to our systems and can't write to c:\windows\temp but should this be a factor here?

WINDOWS\TEMP is not the TEMP folder (unless the user have WIN98 installed).
C:\Documents and Settings\(user name goes here)\Local Settings\Temp\
is the temp folder.

I am not sure how PACK command works internally, maybe it create a new temporary table copy all records not marked for deleted and then erase original one and rename temp table as it. Also check to see if there are suspicious files in the folder where ledger file is.