Elmer,
Unfortunately I don't have any VFP on this computer to test. Just 2 suggestions to try till I can reach my work computer :
-Use for each instead of forms(index) (or starting from forms.count and stepping down might help)
-Set oObj null explicitly

I would code something like :

for each oObj in _vfp.objects
 if pemstatus(oObj,'baseclass',5) and lower(oObj.Baseclass)='form'
    oObj.hide()
    * oObj.Show(2)  && make modeless - this might be needed
    oObj.release
 endif
 oObj = .null.
endfor

Cetin