FindFirst/FindNext: What's wrong with this sample code?

[bitstreamer]

Greetings everybody,

I'm trying to UNDERSTAND this code.
I've already done lots and lots of debugging sessions and I can confirm that the FIND_NEXT routine is never executed.
Every file entry is found using the FindFirst procedure, which is a bit odd.

This small app was nicked from The SNIPPETS DOS archives, which is a bit broken atm but you can still download the code from the "naked" file archive.

I've tried to implement a global static variable which counts the FindFirst() calls, and it's always EQUAL to the number of total files, which is definitely odd.
I've always thought that FindFirst() is only for finding the very first file, as the name suggests.

Src archive included, 5 KB. I had to link this externally because I got an error message of this forum that the quota is exceeded!
::Zip File Link Removed - Please use code tags::