Jim,
I run into the same issue. See message#640897. It's a VFP7 issue.

>Doing a demo of the Form level KeyPress (VFP7) here in a training class and we're finding that the F2 key isn't trapable (is that a word?). Am I having a brain cramp or is the F2 key not available to use in the Form KeyPress?
>
>Is this a VFP 7 thing???