Tamar,
I did most of my preVFP coding in FoxProDos2.5. I believe the behavior of the replace command in VFP is significantly different than in 2.5, however, before completing the end of this sentence I went back and did some testing in 2.5 and sure enough if the current record is at eof() replacements are not done in referenced tables. Was this a generally know bug? error? The 'replace in' command was not available in 2.5. It sure is hard changing the way I write a replace statement after having done it a certain way for 10 years and untold thousands of time.
A problem is a problem only as long as it has a possible solution. Lacking that, it becomes a FACT!