Try this:

SET DEFAULT TO \EFG
SET SAFETY OFF
SET TALK OFF
SET ECHO OFF
SET DELETED ON

USE pay IN 0
SCAN FOR ins_co_nam = "AMERICAN UNITED LIFE" AND group_code = 'A02'

    REPLACE paiddate WITH THISFORM.TEXT1.VALUE,;
	    fromdate WITH THISFORM.TEXT2.VALUE,;
	    todate WITH THISFORM.TEXT3.VALUE,;
	    servfee WITH .69
	
    REPLACE balance WITH amt_pre - servfee,;
	    duecompany WITH balance posted with "P"

    REPLACE servfee WITH 0, percent WITH 0
	
ENDSCAN	

SELECT * FROM test, pay WHERE test.ss_numb = pay.ssnumber AND pay.ins_co_nam;
= "AMERICAN UNITED LIFE" AND pay.group_code = "A02" and AMT_PRE > 1 INTO Cursor;
CuReport ORDER BY test.last_name

IF _TALLY > 0

    *BROWSE
    REPORT FORM payment3b PREVIEW
	
    inResponse = MESSAGEBOX("Do you want to post this data For A01    AUL?",36,"E.F.G. POSTING OPTIONS!")

    IF InResponse = 6
	
        *LOCAL loProgBar
 	SELECT pay
	*loProgBar=ProgBar()

	SCAN FOR GROUP_CODE = "A02" .AND. INS_CO_NAM = "AMERICAN UNITED LIFE"

	    *loProgBar.npercent=RECNO()/RECCOUNT()*100
	    SCATTER MEMVAR MEMO
	    INSERT INTO hist FROM MEMVAR

	ENDSCAN
    ENDIF	
ELSE
    MESSAGEBOX("FOUND NO RECORDS THAT MATCH YOUR REQUEST")	
ENDIF

>>Help,
>>I using command buttons on a form as a graphic menu. This menu calls other forms,
>>that in turn have menus. I understand that VFP only allows 128 do commands at a time. The most I have at one time is four
>>(4) forms open at one time. My problem is, that I don't belive I'm using a proper closeing method. I beleive that if I can close
>>my forms propely, my proublems with Do Nesting Exceeded will be solved.
>>Can anyone please check to see if my code is grammatically correct ?
>>The code is started from a command button on the form.
>>
>>Please return via Email
>>
>>
>>Thanks John
>>
>>
>>SET DEFAULT TO \EFG
>>SET PATH TO \EFG
>>SET SAFETY OFF
>>set talk off
>>set echo off
>>CLOSE ALL
>>USE pay
>>GO TOP
>>replace all PAIDDATE WITH THISFORM.TEXT1.VALUE, FROMDATE WITH THISFORM.TEXT2.VALUE, ;
>>TODATE WITH THISFORM.TEXT3.VALUE, servfee with .69, balance WITH amt_pre -servfee, ;
>>duecompany with balance posted with "P" ;
>>percent with 0 FOR INS_CO_NAM = "AMERICAN UNITED LIFE" AND PAY.GROUP_CODE = "A02"
>>
>>REPLACE ALL servfee with 0, percent with 0 for amt_pre = 0 AND INS_CO_NAM = "AMERICAN UNITED LIFE" AND
>>PAY.GROUP_CODE = "A02"
>>go top
>>set deleted on
>>SELECT *;
>>FROM TEST, pay ;
>>WHERE test.ss_numb = pay.ssnumber .AND. INS_CO_NAM = "AMERICAN UNITED LIFE" AND PAY.GROUP_CODE
>>= "A02" and AMT_PRE > 1 ;
>>INTO Cursor CuReport ;
>>order by test.last_name
>>IF _TALLY > 0
>>BROWSE
>>report form payment3b preview
>>inResponse=MESSAGEBOX("Do you want to post this data For A01 AUL?",36,"E.F.G. POSTING OPTIONS!")
>>IF InResponse = 6
>>CLOSE ALL
>>LOCAL loProgBar
>>SET PATH TO \EFG
>>SET STATUS OFF
>>USE PAY IN 0
>>
>>SET FILTER TO GROUP_CODE = "A02" .AND. INS_CO_NAM = "AMERICAN UNITED LIFE"
>>
>>SELECT PAY
>>loProgBar=ProgBar()
>>SCAN
>>loProgBar.npercent=RECNO()/RECCOUNT()*100
>>SCATTER MEMVAR MEMO
>>INSERT INTO HIST FROM MEMVAR
>>ENDSCAN
>>*** ENDIF
>>SET FILTER TO
>>CLOSE ALL
>>RETURN
>>
>>ELSE
>>*** (DO NOTHING)
>>ENDIF
>>
>>*** RELEASE THISFORM
>>** DO FORM AULA01A
>>ELSE
>> MESSAGEBOX("FOUND NO RECORDS THAT MATCH YOUR REQUEST")
>>*** CLOSE ALL
>>*** DO FORM AULA01A
>>ENDIF
>>*** RELEASE THISFORM
>>*** close all
>>RETURN
>>***
>>
>>***
>>
>>***