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Mike:
I tried your idea, but with the empty directory structure I still get the same thing.

I recompiled all libraries and tried again - still the same thing. I'm gonna dig into the particular method and see if anything's funky there.

Does this smell like the old FPW 2.6 deal where if you had a CD ROM drive mapped as D:, you'd get an I/O error unless there was a CD in it?

Thanks for your input.
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Have you tried copying the library where it should be and see if you get the error.