Ok here's how to replicate the bug!!

1. Copy previously created free table that has been indexed to a temp directory WITHOUT the CDX.
2. At the command prompt type: SET SAFETY OFF
3. USE the table (e.g. USE C:\TEST\TABLE.DBF) Notice NO ERROR occurs!
4. Delete the table.
5. Now type ON ERROR DO ERRHAND.PRG (We don't have a prg but even if we did the results would be the same.)
6. Now RECOPY the free table again without the CDX.
7. USE the table again! Surprise! The ON ERROR kicks in!
8. Say something unkind about Microsoft.