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>1. Can VFP 8 be installed on a PC that has VFP 7 on it. If yes, any issues to watch out for?

Yes. I'm running XP Pro with Vfp7, VFP8 and .NET. So far, crossing my
fingers, I have had no problems.
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>2. Can applications previously compiled in VFP 7 be now comiled with VFP 8 readily? Any issues that I need to consider prior to compiling?

I have just finished a recompile of our complete LIMS system without a hitch. Now I'll see if the users can find some problems.

>3. Can applications complied in VFP 8 be run on client machines using Win95, Win98 and XP Home Edition?

I have a field data collection program that I tested with the VFP 8 Beta. It works fine on 98 and above, but it really bombs on 95. With 95 it seems to freeze just like it did with VFP 7.0. I have suggested to the field staff that they REALLY need to upgrade to at least 2000.

Remember, your experience may vary.