>No, my ShowWindow property is set to 0 (In-screen). My WindowType property is set to 0 (Modeless).
>

Oh, your thread title says "Modal form" :)

>I should've mentioned this earlier. Our program starts with hqmain.prg that builds a menu, launches a modal form (as a splash screen) and issues a read events.
>

What code or action makes the modal splash screen go away? Have you traced throudh the code to ensure that the READ EVENTS is actually happening?

Also, what happens when the form doesn't run...does the application completely close down, or is the menu still active after that point?

>Selecting a menu option launches a second program which in turn launches a third program called p_brform. (I know it seems ugly but it's legacy code that just won't die.)
>

Have you added a simple DO FORM to the menu, and have it run a simple modeless form to see if the problem exists in that scenario?

I'm out of questions for now. :)