>I noticed recently that my grid column headers that contain an ampersand(&) character are being changed to underscores (_) character with vfp7. Has anyone else experienced this?

Yeah, thats a VFP7 feature. Thats how you add shortcut keys to column headers (&Header in grids are like \<Header on menus).

>Does anyone have a solution?

Hmm... nothing elegant, but I think you should request to get this fixed in the Service Pack (suggest that ampersand followed by a space should be just the ampersand, not an underlined space).