>I am trying to add a activex control GarXface.ocx to a form. I have tried dragging it from the component gallery and this does not work.
>I have been told that I need to add it to a form as a reference. Not sure how to do this. Any help would be great.

Try to add ActiveX control (olecontrol) from Forms Controls toolbar and see if the control shows in the list.
It's possible that the control may not work in VFP at all..