The form is opened in VFP after conversion.

What do you mean "Snap into position"? I want to center it on the form.

When using Allign horizontal the object disappears from view. This is also happening to new objects like buttons that are added to the converted form.

The problem is easily duplicatable. Find some form created in FP 2.6 or create one and put some button in it. Convert it to VFP 7.0 and try Format/Allign/Horizontal