See below how I handle the enter key in my grid base class. This approach does not seem to be compatible with e.cancel= false of the cellValidating event.

What gives?

    Protected Overloads Overrides Function ProcessDialogKey(ByVal keyData As Keys) As Boolean
        If keyData = Keys.Enter Then
            Dim col As Integer = Me.CurrentCell.ColumnIndex
            Dim row As Integer = Me.CurrentCell.RowIndex
            Do
gtoLoop:
                col += 1
                If col = (Me.Columns.Count) Then
                    col = 1
                    row += 1
                    Exit Do
                    If row = Me.Rows.Count Then
                        Me.DataSource.datasource.tables(Me.DataSource.datamember).rows.add()
                    End If
                End If
                If Me.Columns(col).Visible = False Then GoTo gtoLoop
                Exit Do
            Loop
            Me.CurrentCell = Me(col, row)
            Return True
        End If
        Return MyBase.ProcessDialogKey(keyData)
    End Function

    Protected Overloads Overrides Sub OnKeyDown(ByVal e As KeyEventArgs)
        If e.KeyData = Keys.Enter Then
            Dim col As Integer = Me.CurrentCell.ColumnIndex
            Dim row As Integer = Me.CurrentCell.RowIndex
            Do
gtoLoop:
                col += 1
                If col = (Me.Columns.Count) Then
                    col = 1
                    row += 1
                    If row = Me.Rows.Count Then
                        Me.DataSource.datasource.tables(Me.DataSource.datamember).rows.add()
                    End If
                    Exit Do
                End If
                If Me.Columns(col).Visible = False Then GoTo gtoLoop
                Exit Do
            Loop
            Me.CurrentCell = Me(col, row)

            e.Handled = True
        End If
        MyBase.OnKeyDown(e)
    End Sub