>>If the runtime files were not installed and registered on each machine running the application, the problem is failure to install the runtime properly. The runtime should be load on every machine that will run the VFP app; at a minimum, the runtime and all .DLLs it needs need to be in the Windows search path, and several of the components need to be registered as well. The file VFP6R.DEP defines the dependencies for the standard VFP6 runtime. Placing the runtime locally on every machine is standard practice so that VFP is not reliant on connectivity for using VFP. See Chapter 25 and 26 of the Programmer's Reference in the OnLine Help.
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>Doesn't this take away the whole idea of making an application for a network if the application has to be installed locally? I can't just load the program using the setup.exe to a network drive and have everyone access the program and data because that is where the shared data is located? I'm missing something.

No, there are resources that have to be loaded at the local station even where the main executable resides on the net. ActiveX controls, system .DLLs and the like should be local resources. I'd recommend reading up a little on Windows philosophy.