This can also happen if the HANSA.HDB is renamed, and the service is started back up. It creates an "empty" HANSA.HDB which is not set up for remote access, and the client gets that message.
I would like to know what BackgroundHALShouldPause does, and how to use it. While it's listed in the HAL Primitives report, it is not used in source code and it doesn't appear in the LMS HAL...