When you print the Inventory Reconciliation report, is the Enter/Edit Physical Inventory function dialog (screen) open at the time? This is one thing that was found to trigger this error.

I have tried it here and cannot duplicate the problem, however, perhaps a temp file is still being held open on your system - or the workfiles are not being created as they should be during the first step - Print Physical Inventory Worksheet ... when this occurred, was there anyone else in Inventory at the time?

Other things to consider: If you are using Windows NT, 2000 or XP, Opportunistic Locking must be disabled on the workstation(s) and the Server. If you are using Novell client32 - is File Caching turned OFF? These settings determine how files are handled in a network environment.

Is there another station you can print this report from?