When this feature is on, the selected text in an inactive field is shown by means of a rectangle drawn around the selection, rather than actual highlighting. It probably does not look as good as you'd like, but at least it serves to show what line is selected. Here is a demo:
LOCAL FN DoDialog
evnt = DIALOG(0)
id = DIALOG(evnt)
SELECT CASE evnt
CASE _efTab
EDIT FIELD 3 - WINDOW(_efNum)
END SELECT
END FN
ON DIALOG FN DoDialog
WINDOW 1
TEXT _geneva, 12
EDIT FIELD 1, "Select some text in either or both fields.", (10,10)-(200,50),_framed
SETSELECT 0,0
EDIT FIELD 2, "Press 'Tab' or click mouse to switch fields.",(10,60)-(200,100), _framed
SETSELECT 0,0
'Enable outline highlighting for both fields:
dummy = FN TEFEATUREFLAG(_teFOutlineHilite, _teBitSet, TEHANDLE(1))
dummy = FN TEFEATUREFLAG(_teFOutlineHilite, _teBitSet, TEHANDLE(2))
DO
HANDLEEVENTS
UNTIL _false