Jim, I think the best simple explanation can be found in Programming VFP 3.0 by Whil Hentzen on page 70. Basically the character binary works similar to the regular character field. The big difference comes when you use code pages. Regular charater fileds when opened in another code page will be translated. English translated to German as an example. If stored in Charater binary English stays English no translation.
Hope this helps
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