Sorry, it's taken me a while to get back to you. Your quote from the help file should give confidence that the statement handle can't be the problem. I've just finished going through the application for at least the 10th time making sure that every table that is opened is actually closed, that the connection is created only when the application starts and disconnected when it shuts down. The code that validates the connection disconnects any invalid connection before trying to create a new, valid one. I just don't see anything unusual at all.

I have begun to doubt that it is a connection or open file. What does appear clear is that occasionally something is left in memory on Terminal Server after a completely normal shutdown of the application. This can cause a pretty scary error from TS at a future login--by someone who may or may not have ever run the application. I log in and run the progam multiple times each day but I have never seen the error myself. Circumstantial evidence points to the statment handle since that is the only major change--but it just isn't logical..