>or if someone knows how to get around and reset the internal file handle for the file that VFP was doing SET RESOURCE TO when it raises the memo not found or invalid message that would be even better

Is an invalid resource/memo file something that happens often in your environment, or do you simply happen to have one corrupt file that exhibits this behaviour?

BTW have you experimented with SET TABLEVALIDATE?

I've personally seen corrupt VFP tables (e.g. .SCX, .VCX etc.) cause VFP to behave strangely. You may have found another instance.