I thought I would update this, I sent yet another message with the complete text from MS again to the tech support, and told that I needed it fixed or a refund. I just received an e-mail from Phil Daley (VP Corporate Support):

Kirk:

I have asked that the C developers look at the code to see if the parm
to WM_CHAR is the culprit. I updated my own 2000 system with the patch
and reproduced your reported problem ... Pretty nasty and makes the Grid
next to useless. We'll get back to you when we know more.

I know these are just words at this point (sigh) but hopefully they come through.

Kirk