It looks like you're following the steps I outlined earlier.

I just followed my own steps and they work as expected for me (image attached). I run the EXE by double-clicking on it in Windows Explorer. I can click on either the button or the red "X" at the top right to close the form. In both cases the .EXE shows in Task Manager while it's running and disappears when I close it.

Admittedly I'm on Win7 but it should be easier to get it to work on XP, there are fewer potential security issues.

Just to be 1,000% sure - when you're building the project, the Build Action you have selected is "Win32 executable / COM server (exe)", right? For testing it would probably be a good idea to have the "Recompile All Files" option checked (enabled) as well. When you build the project you should get a dialog that looks like the 2nd image attached to this message. If you see something else you may be getting a framework app builder.

Clearly something is different in your environment. Some things to check (off the top of my head):

1. My test EXE creates FOXUSER.DBF and FOXUSER.FPT in the same folder as the EXE. If for some reason your permissions don't allow that maybe that's a problem. You can prevent this from happening by adding a second line to your CONFIG.FPW file that reads RESOURCE=OFF.

2. Can you temporarily disable real-time antivirus scanning (or exclude the test folder) to see if that makes a difference?

3. Does your account have administrator privileges on your machine, or are you using a limited account?

4. Are the files on a local disk or on a network share?

5. It should not be a factor for such a simple test EXE, but you could try cleaning out your Windows temp files folder

6. Is there any other unusual software running on your computer - continuous backup, 3rd-party firewall, ? Has it been "locked down" in any fashion by a sysadmin on a domain or other network?

7. If all else fails you may need to do a comprehensive antivirus/antimalware scan. Some malware hooks EXE files (often wrapping them when they run) and can cause strange behaviour.