Permissions ... hmmmmm
select * from openquery([fred], 'Update drugnote set dntnote="test1" where dntcode="ANPE1"')
works fine but returns (not suprisingly) error 7357 which aborts the procedure.
changing this to
update fred...drugnote set dntnote='test1' where dntcode='ANPE1'
returns
Msg 7333, Level 16, State 2, Line 1
Cannot fetch a row using a bookmark from OLE DB provider "VFPOLEDB" for linked server "fred".
So, between a rock and hard place.