After
* rebooting my PC
* cleaning out some junk items out of the resource file
* cleaning out temp folders
* explicitly COMPILE of the PRG
The following:

CREATE CURSOR Test (This i)
INSERT INTO test VALUES (1)

m.xo = CREATEOBJECT("X")
m.xo.Foo()

DEFINE CLASS x as Custom 
	Value = 2

	FUNCTION Foo
		SELECT Test
		m.oObject = m.THIS				&& 1
		WAIT WINDOW TRANSFORM(m.oObject.Value)	&& 2
	ENDFUNC
ENDDEFINE

appears to work in VFP6.