Never mind! I figured it out!

You have to set the value BEFORE you initiate the menu. Like so:

DO frsmain.mpr With This.frs7toolbar,"menubar2"
this.menubar2.AllowFloating = .f.
this.menubar2.HasGripper = .f.
this.menubar2.movable = .f.
this.frs7toolbar.InitCommandBar(this.menubar2)

Weird, but it works!