Hello David.

I think it is a bug with VFP 7.

I think that you are mistaken and that it is a bug in your code instead < s >. I just created a formset and put this in its Load():

MESSAGEBOX( 'In Formset Load...' )
RETURN .F.

The messagebox displays and then the formset fails to instantiate (which is exactly what I would expect to happen if the Load method returns .F).

FormSet.UnLoad()
WAIT WINDOW 'FormSet.Unload'

You will never see this wait window because returning .F. from the form Load means that the form never loads. Since the form never loads, it can never unload.