Hi Mike

If your help windows is open then you won't be able to compile your help project, try closing it and compile, it works for me, what i did to reproduce the behaviour,

open vfp 7
set help to myhelp.chm
help
open html workshop (ver 4.74.8702.0
now if i recompile error msg pops up

select vfp7
close help window
select html w.s
recompile (works fine)

HTH