>We have application working with pkzip and it works fine

I now know what the problem was. It cost me 95$ (calling
Microsoft). I am passing it along to you (and anyone else
curious enough to look at this) because you are using PKZIP
with Windows95 and may run into the problem. This will save
you $95. The problem is that we were running the VFP
application on a WINDOWS 95 system that was installed NEW
instead of over the top of DOS. The COMMAND.COM that comes
with Windows 95 is thought to be invalid by VFP. The solution
is to get a DOS 6.2 copy of COMMAND.COM and put it into the
local directory of the application and everything will be
fine. We did and everything is. On to the next problem ...