Please help! Another Application failed to initialize properly

[jessejamesjim]

I'm running Windows 2000 SP4 with Metaframe 1.8 SP3. Intermittently my clients will hang. When I reboot the client PC's, I'm getting the error "Application failed to initialize properly (0cx0000006)" (Event ID 26) in the Event log. The application that the clients are running is Amtech's (corrugated industry) PDE.EXE. It's a plant data entry system. I checked with Amtech and they said it was a Metaframe issue. I then started looking around and found that it may be in fact a Terminal Services issue. The only way I can "release" the application so it works, is log everyone off of Metaframe and then the application will work again. When the application is in it's "hung" state, I can't even run the app locally on the Server. I then found kb818528 on MS's website and applied it. However, I'm still getting the error. Any suggestions???