>So, if I understand you correctly, this is a problem with the VFP cursor, not SQL Server per se, right?
Yes. In general, if you see a VFP error the error is on VFP. For ActiveX, SQL servers (not: MS SQL SERVER. Any) or the like VFP raises special errors, where you need to ask the server for extended error message.
If you got a C0..05, the code that represents VFP fails.
If you got a bluescreen, first guess is your hardware.
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