Thanks to all that tried this with XP. As I've said, I don't have any problem at all with WebAppBuilder on Win2K.
If someone fixes the AVFp 2.1 version of WebAppBuilder on XP, I'll include in the next maintenance release and give full credit to that person. It shouldn't be hard. The part that's creating the VDs is PostSetup.dll. We know it works when AVFP is first installed. But, that same routine is not working in WebAppBuilder on XP. From some of the responses here, it sounds like it's a pathing issue.
Any help is appreciated - support Open Source in VFP with AVFP!