Does the "TERR Points in Polygons Data Function" dxp work with shapefiles that are not WGS84?

Loaded new LL data into demo dpx - function works. Added new shapefiles that are not WGS84 originally - stopped working. Changed datum projection in TERR script to NAD27, still didn't work. Left the datum NAD27 and switched back to shapefile with WGS84 projection and it worked again. 

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