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>>Thank you for your tip. The source files and the targer directory for the install disks are on our network. I tried the setup wizard from another machine using the same source and target directories. It worked fine. So the problem must be on the local machine. It is still a head scratcher as I reinstalled VFP 5.0, deleted the compress directory and the distrib directory but still can't produce a good setup file from that machine.
>
>There was a thread a while back on this...did you install SP3, by any chance?

Yes I did install SP3.