Thanks. That helped. Now I know where the problem is occurring, I just dont know why. The problem is in the updateonetable method when it is working with a free table and looks for the path.
if empty(lcDBC)
lcFile = lower(.GetFreeTablePath(tcAlias))

the .GetFreeTablePath returns the update directory instead of the data directory, ie. c:\myinstall\myapp\mydata\update\freetable.dbf instead of
c:\myinstall\myapp\mydata\freetable.dbf

It progress box says it is re-indexing. The free tables arent in the update directory. The tables in question are all Stonefield Report (SFRWIZARD, REPORTS) ,VFX tables (VFXAUDIT, VFXLOG, VFXLOCKS, VFXSYSID, VFXUSR, VFXRES, VFXFOPEN, VFXMSG) or my tables for user defined fields.

Sandi