I have heard that Paris in August is not so good stores are closed and locals are out and about, but I found the contrary anyone else?

I was there last August for several days. Almost everything major remains open. A few family-run shops or restaurants may have been closed but we did not run into any problems at all. And it was not that crowded (e.g., we only waited abt 15 mins for the Eiffel Tower in late morning).

been in August several times; most everything we wanted to do was open. if we found a restaurant that was closed we simply dined elsewhere.

That was very true 20 years ago. I doubt you'd even notice it today. There MIGHT be some fabulous restaurant you want to dine at that will be closed for the whole month, but probably not.

In my neighborhood, there are a number of small places closed at the moment until August 25th. Plenty of other places are open.

August is a delight in Paris even more for the Parisians than for the tourists (who tend to crowd together in the same places during the day, but I hope they know how to spread out and enjoy the city properly in the evening).