>I am having same problem. VFP 5.0 Win95
>At first I was having trouble with config.fpw not being used. I found that it is expected to be in the distribution subdirectory, in other words the *first* directory. This may not be the same as your .exe directory.

I got it as well. To solve the problem, I had to restart Windows. Visual FoxPro didn't want to continue to use my CONFIG.FPW. This happened twice today. But, in my case, it was related to PHDBase because it was showing a failure when I wanted to exit Visual FoxPro. Are you using PHDBase as well?