I can confirm that is most likely to be the problem - What happens is that your clients don't have a place, other than the current directory where the app resides, to put their foxuser.dbf resource file.
Your best bet would be to put a shortcut on the client station's desktop to point to the exe on the file server but have them use another resource file local to the machine. For that matter, you may want them to put their temp file on the local machine, also.
You can do this by adding parameter to your exe and including a config.fpw. Look at the Manual for "distributing your application"