When I click the pen tool the cursor shows the pen tool with the "x". When I click to create the first point nothing happens. If I click and drag it will create a point, but I don't want curves. I want a straight line.
The problem was Google Chrome browser! As soon as I quit Chrome my pen tool started working again. I didn't even need to restart Fireworks. I wonder if it is a conflict with one of my plugins/add ons. Most likely.
UPDATE - I did narrow it down to one specific Google Chrome extension. It was "Google Play Music"