I have main application with a few databases that I had merged over period of time and many forms in there. When I perform xlookup from external database (application)  it fails. The same one from within the application works fine. I believe this has to do with the security setting. What exactly do I have to change in order that I can do lookups from other applications?

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Carl, I am aware of that. It is placed with full path even though partial should work. such as

"Data\Medical.db"

To be certain, I have also placed a full path.
"C:\Sesame\Data\Medical.db"

I have also used hard coded lookup through MassUpdate using one record and that even does not work, so I know it is security, as for example

var vTest as String

vTest = @xlookup ("Data\Medical.db", "012345678", "Index!RecNumber", "Name")
WriteLn ("Name is: " + vTest, "", "")

I know positively that RecNumber 012345678 exists with my own name. Writeln window only displays,  Name is: 

I think I might have located the problem. After having merged the different databases with the same security setting might have duplicated and re-duplicated the security setting. Normally it would not let you put the same user twice, I see the same users multiple times. The same group also several time. After making proper backup, I will remove all security setting and put one group, that is the same as the external application from which I want to lookup into this database.

I will let you know what happens.