>>>>Yes, excellent memory! Now to troll the bugfix list for SP2 to see if it's been fixed ...
>>>>
>>>It was not - at least it's not mentioned in the list of fixes.
>>
>>For lurkers, the list is at http://www.microsoft.com/downloadS/details.aspx?FamilyID=a28ddec6-ba3c-49d0-8176-8c0b3fca06d1&displaylang=en
>>
>>While TEXTMERGE is not mentioned, TRY...CATCH is mentioned once near the beginning. I suspect the problem actually is with TRY...CATCH. Maybe that fix also fixed this issue... I'll put together some repro code so someone with SP2 can test it.
>
>I can test it tomorrow too - don't have VFP here installed.

Here's some repro code:

SET TEXTMERGE ON ;
	TO SomeLogFile.log ADDITIVE ;
	NOSHOW

TEXT
This is Line1
ENDTEXT

TRY
	* Something that creates an error:
	x = y

CATCH
	* We don't really need to do anything here

ENDTRY

* Try to add a second line to the log file:
TEXT
This is Line2
ENDTEXT

* Close log file:
SET TEXTMERGE OFF
SET TEXTMERGE TO

* Do we have the string "Line2" in the log file?
?"TEXTMERGE file improperly closed by TRY...CATCH bug: " ;
	+ IIF( "Line2" $ FILETOSTR( "SomeLogFile.log" ), "False", "True" )
?VERSION()

This bug does not occur with VFP8 SP1, so it was introduced sometime after that.