>Is the recordsource for the grid set to anything?

Well, I do have the same problem (the grid field become just blue when selected) with following configuration:

Vfp 5.0a
grid recoir source set
current control set
column sparse -> .F.

When sparse is .T. there is no display problem, but for what we have that combo in a grid then?

I've experimented with different row heights - no effect.
I've experimented with different colors - no effect.

Oh that pain!