Help - On Error Goto

Hello my gracious colleagues,

I have a small problem with the On Error Goto functionality
in the application I inherited. Heres a snipit of the code:
Private Sub cmdOneRight_Click()

(A whole bunch of code)

On Error GoTo lb_exist
Set parNode = Tree2.Nodes.Item(parKey)
GoTo lb1

lb_exist:
(Some other type of Code)

lbl1:
(Some more code)
end sub

Now the explanation:
When the application gets to the "Set parNode = Tree2.Nodes.Item(parKey)" (parKey = R8) it fails with the following error message:

Run-time error '35601': Element Not found"

and will not goto lb_exist.

Now the questions:
1) Why will VB5 sp3 not got to lb_exist when the error is
encoutered?
2) How would I fix this problem?

Thanks to all who help.

Unless you need to see the error you could try to incorperate a On error resume next, but I don't know if that is what will work well for you.

Boy do I feel DUMB
I found my STUPID pills again and I thought I threw them
out.

Firstly thanks Matt for your suggestion.
The real problem is that the IDE was set to break on ALL
errors. Once I change it to break on unhandled errors
everything now works fine.

TGIT (Thank God Its Thursday) and tomorrow is Friday.