I see the same behavior under VFP7 SP1.

>Hello Stacy,
>
>I have resorted to doing exactly that...but I'm most curious to why I am having to do so. I have never seen a bug reported on this, and it seems unlikely a bug like this would survive this long.
>
>Hopefully someone will jump in and confirm or deny whether they have this behaviour on their system.
>
>Thanks for your reply.
>
>>>
>>>I have a modal printer selection dialog that allows the user to close my application down from the 'X' in the upper right hand corner. This throws my application object loopy...
>>>
>>>I've narrowed the problem down:
>>>
>>>If I create a modal form, with nothing on it, and run it, I am able to close an application (or VFP) while that modal form is displayed. If I minimize the app (or switch to another application and switch back), the 'X' is now greyed out, as it should be when the modal form is first displayed.
>>>
>>>I'm running VFP6 SP5 on W2K.
>>>
>>>Any ideas? Thanks...
>>
>>** one answer to get around your problem...
>>
>>If your modal form is based on a class, you could turn off the X while running any modal form based on that class...
>>
>>_screen.closable=.f.