Hi Naomi
i tried this similar test code and it works as well for me.try to verify the strtofile params.

*create a  folder in c:\ProgramData as myDir and export the filetostr content to file log.txt (appending)
* i dont run vfp9 as administrator.I dont change any attribute of myDir folder.

declare integer Sleep in kernel32 integer
#define cr chr(13)+chr(10)
if ! directory("C:\ProgramData\myDir")
md  "C:\ProgramData\myDir"  &&create folder myDir if dont exist
endi

for i=1 to 4  &&test 4 sends
local m.myvar
text to m.myvar textmerge  noshow
<<ttoc(dateTime())>>
**********
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Proin vel risus eget lorem feugiat
fermentum nec a turpis. Phasellus purus sem, mollis ac posuere eget, ornare vel orci. Sed ac rutrum
nulla. Aenean ultrices eget lectus eu efficitur. In hac habitasse platea dictumst. 
***********
endtext
=strtofile(cr+m.myvar+cr,"c:\ProgramData\myDir\log.txt",.t.)  &&sent to log all 2 seconds
sleep(2000)  
endfor
run/n notepad c:\ProgramData\myDir\log.txt