>1. open form1 (contains view v_mytable)
>2. form1 calls form2 (contains mytable), private DE
>3. form2 appends a record into mytable
>4. form2 closes (modal?) [right, it's modal]
>5. Form1 does a REQUERY() on v_mytable
>6. form1 deletes new record in v_mytable
>7. form1 does a TABLEUPDATE() on v_mytable which results in an update conflict.

You got it! :)

But it you repeat the sequence from 2 through 5 twice, then go on
6, all is well.

In the original sequence, if I insert

4a. close underlying table

it also works (the requery opens it again).