>One option is to put code in the deactivate() method of the modal form that
>sets focus back to a control on itself. I just tested it; it works around
>the problem.

:-))))

Yesterday I wrote about it :
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I have fixed it by very stupid way : I have put a "ThisForm.SetFocus" instruction into Deactivate method of every modal window that can be called from the Process screen. It worked well until we have translated our product to another languages. We have used INTL toolkit. Here the problem : INTL use modal forms instead standard MessageBoxes. So, it does not work together with my dirty patches.
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Also if you try to show form3 (modal) from form2 - you will have a problem again.