>After running my .app inside vfp a few times and trying to edit a form, I get "GDI memory is low, close one or more windows and try again" which started happening after I added a menu and changed the way my forms load and release. My cleanup has CLOSE DATABASES ALL, CLEAR, CLEAR WINDOWS, SET CLASSLIB TO, CLEAR ALL, RELEASE ALL, SET SYSMENU TO DEFAULT, ON SHUTDOWN. But I get the feeling that something is not closing. I don't know what GDI memory is. What am I missing?

That's your graphical device interface (windows) memory. I had trouble back in 2.6 with it...if you do an MSKB search on GDI, you'll find a number of articles on problems with GDI...