This was a terrific walk-through however, it did not solve my report problem.

I took your steps to make sure that vendor #2 is marked as a 1099 vendor and she is, but she still doesn't show up on the report even with no threshold.

I was hopeful that making all the accounts involved in their transactions 1099 accounts would work as you suggested, but in the wizard mapping section (Edits-Preferences) the only account I could change was the Owners Contribution account.  I did, and ran the report again and nothing changed on the report.

As well, in the wizard mapping section, the Checking Account, Savings Account and Petty Cash do not show up as an option to change.  Is there another place to mark an account as a 1099 account?