Hey, its this a bug to everyone else? Is there a better way to work around it. If I comment out teh BEGIN TRANSACTION and ROLLBACK, the error doesn't occur, if I comment out opening up that child table, the error doesn't occur, and if I SELECT table1 right before the TABLEUPDATE() the error doesn't occur. (Code makes directory on your C drive).

CLOSE DATABASES all

IF NOT DIRECTORY('c:\vfptest\testrule')
	MD c:\vfptest\testrule
ENDIF 
CD c:\vfptest\testrule
DELETE FILE *.*
CREATE DATABASE testrule

CREATE TABLE table1 (field1 i, name c(10) CHECK not EMPTY(name) ERROR 'Name cannot be empty')
CREATE TABLE parent1 (field1 i DEFAULT 1)
CREATE TABLE child1 (field1 i)

USE IN table1
USE IN parent1
USE IN child1

USE parent1
CURSORSETPROP("Buffering", 3)
USE table1 IN 0
CURSORSETPROP("Buffering", 3, 'table1')
USE child1 IN 0
CURSORSETPROP("Buffering", 3, 'child1')
SET RELATION TO field1 INTO table1
SET RELATION TO field1 INTO child1 IN table1

* Adding an item also adds a Cross Reference
APPEND BLANK IN parent1

SELECT table1
INSERT INTO table1 (field1) VALUES (parent1.field1)
SELECT parent1

BEGIN TRANSACTION 
TABLEUPDATE(2, .F., 'table1')
ROLLBACK
WAIT WINDOW ALIAS(1)