>If I have a report file located in a ".\reports" subdirectory during development and the file in 'included' in the project, does the compiled .app file require the report file (.frx) in a ".\reports" subdirectory or is it embedded into the .app file? The reason I ask is that when I change the report and copy the new report to the .\reports directory, the compiled report does not change.

prg, frx, scx, vcx, mnx and any files called by the #INCLUDE directive are all embedded in .app and .exe

HTH