Tony,
I just tried this and and saw the same problem you are having. I think the problem is caused using a cursor for the RowSource of the cbo.
I got it to work correctly by using a form array property for the RowSource instead. You may also be able to AddList the items to build the cbo.
>I am using a combobox in a grid. I have it linked to an employee table, boundto=.t., boundcolumn=2, rowsource=a cursor with two columns (col1 is the name, col 2 is the emp number), controlsource is a table field with an integer employee number. When I activate and pulldown the combobox, the name that was there is not selected in the pulldown, the first item is selected instead. Further, when I select an item the name doesn't show in the display, it remains blank until the combobox loses focus. Any ideas as to what is happening here? I the same combobox on the form and I am not having these problems with it. In fact I copied the combobox to the grid, just to make sure they were the same! Oh I should also tell you that the column.sparse=.f. and the combobox is the current control, I left the textbox in the column though.