>After posting the original message I put a "set step on" right after the definitions of all the sets (including set delete on) in the init method. Records shown in the data session grid were all right. I mean deleted records were not there. And after that resuming running of the app records appeared like they always should have appeared.
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>Any idea on that behavior?

It's likely you're opening files through the data environment rather than explict USE statements in the form INIT -- so SET DELETED ON in form INIT is already too late -- the grid has already "captured" the table state. The suggestion to use GOTO TOP forces the rescan of the table (similarly you can use LOCATE). Likewise, the SET STEP ON in interrupting the program will likely cause the grid to implicitly rescan the table. If you're opening the file in the data environment, perhaps SET DELETED ON should be in the INIT of the data environment rather than the form INIT?