>Fred,
>
>The forms are in the project. I looked at the project info. to see the list of files and visually verified that my forms where checked for being included before I compiled my .APP file.
>
>That is the whole problem right there. What I can't figure out is why I get a file doesn't exist error in my compiled .APP file when they were included in the project to begin with?
>
>This thing is driving me crazy...

What happens if you specify the relative path in your DO FORM statement? Say you have your project built as:

MainFolder
    \Forms
    \Menus
    etc.

so in your code that actually starts the form, you have DO FORM Forms\form1 ? Does that work?