Well, after talking with MS support and a VFP Support person, MS has found this to be a BUG in their code. They could not give me a satisfactory work around for this issue, so at this point, we are not used the DECLASS & DECLASSLIBRARY properties on our forms.

The work around we did was to acutally drop the DataEnvironment on the form and SEND TO BACK (so it the first object that loads). In the init of the DataEnvironment, I call "OpenTables" method if the DataEnvironment is on Form.

One other thing to look out for, is if you reference a table/view in your dataevironment on a grid. For what ever reason, the GRID seems to load before the grid does, even though the grid is the first thing in the tree. I remember reading/hearing a while back that the grid acutally loads before the form's load. So, I turn BINDCONTROLS to .f. and then in the INIT of my form, i reset it to .t. The were basically the only changes I had to do.

MS would not tell me if there would be a Service back for VFP8 to fix this bug, however, they did say it would be addressed in VFP9.