David,
If a single procedure or function compiles to a size greater than 65K, you will get this error. Is this program one monolithic procedure that cannot be broken down into smaller procedures or UDFs? A prg file may contain multiple procedures and functions and the compiled size can be more than 65K, but a single procedure or function cannot compile to more that this limit. I don't know why but this is the case. Your solution is to evaluate why this procedure is so large, and try to create sub procedures to perform some of the task.
HTH
Elmer
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