I remember that somebody else mentioned this but I cannot find the thread.
If you think it's a bug report it at http://support.microsoft.com/Support/vfoxpro/report/report.asp

>We tend to build the database (included, not excluded) into our executables. It contains our connection to the back end server and the remote/local views to the data. By including it, we have less files on the client site to manage and we can affect changes to the remote views during updates more quickly.
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>One of the things that we would do with the remote views was to allow it to be resorted after it arrived (Index On) locally. Up to VFP 6.0, you could do this without a problem. Now, we get error 111 "Cannot update the cursor". It is as though the remote views have been demoted to cursor status without the ability to add the NOFILTER | READWRITE clause
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>Of interest is that while you are in the IDE, the problem doesn't show itself because the program directly accesses the database on the development drive instead of getting it's information from the folded-in database. I believe what is happening is a bug - probably related to the changes affected to the VFP Select statement (readwrite).