Solution: To use Kanji in a FoxPro report you need to have Kanji 'enabled' on your machine. Then you need to set the DEFAULT to Japanese. After restarting my machine I was able to use Kanji in a report form using MS Mincho as the font.
For those not already familiar with this process here are some tips.
1. Go to Control Panel, Regional Settings, General, then select Japanese in the lower portion of the panel (Language Settings).
2. Go to the Input Locales tab. Click "Add". Select Japanese in the Input Locale box and "Japanese" in the Keyboard Layout/IME box. Click OK.
3. Back on the General tab select "Japanese" in the "Your Locale" box. Click on "Set Default" and select "Japanese" in the "Select the appropriate locale" box on the "Select System Locale" panel. Click OK and Apply as appropriate to finish.
I have Windows 2000 Professional on my computer.
Thanks to MGagnon, NC1264, and Janzen P. (at the company I work for) for their input on this problem.