Yes, FULLPATH() returns strange result in VFP 7 in this case. Still, I don't understand why are you checking for file named "Test File.txt" (with quotes) when the actual file name doesn't have quotes in it?

>This little guy popped up in my APP launcher when I recompiled with VFP7:
>
>

>local lcFileName
>
>if !directory("Fullpath Bugtest")
>	mkdir "Fullpath Bugtest"
>endif
>
>set default to "Fullpath Bugtest"
>if !file("Test File.txt")
>	strtofile("This is a test","Test File.txt")
>endif
>
>lcFileName = chr(34)+"Test File.txt"+chr(34)
>clear
>
>? "Original Filespec: "+lcFileName
>? "Filespec with FULLPATH: "+fullpath(lcFileName)
>
>set default to ".."

>
>Run this in VFP7 and VFP6, SP5 and the results are different.
>
>VFP6, SP5 Version 06.00.8961.00
>VFP7 Version 07.00.0000.9262