>Beth,
>Seems like it always returns .T.

PMFJI, But could it be related to SET EXACT = OFF and seeking an empty string or matching on an partial match?

SET EXACT ON
?SEEK("") && returns .f. unless there are blank values in the key field
SET EXACT OFF
?SEEK("") && returns .t. ALWAYS

SET EXACT ON
?SEEK("TE")  && returns .f. requires exact match  
SET EXACT OFF
?SEEK("TE") && returns .t. and lands on first record with TE as first 2 characters