Perhaps it's an issue that started at VFP 7 or higher. I'm running VFP 6 sp 5 here at the office and cannot reproduce your problem.

I've created a form, tossed a few controls up, put code in custom form method that is called by the form's resize and init events without problem. Created both a SCX and VCX versions of forms.

I'll try again with VFP 7 when I get home. I don't have VFP 8 so can't test with that. :(

Have you put a wait window "resized" nowait command in the resize event?