>>If you are using a resource file (foxuser.dbf) then you might try clearing it out (pack) then open the form again and see if the snap to grid takes effect.
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>That was it! Thanks Bret... Do you know why it might have become confused in the first place?

The resource file is really great in remembering things for you, but sometimes the resource file overrides things that you want to do. Either because the file becomes corrupted or it was not wrote to correctly. I can only guess, but I have seen this same behavior a few times with my project. I would tell a form or a report to be in some mode (snap to grid, etc..) and the resource file would override what I just did. Clear out the reosurce entry or the file itself tends to take care of the problem.