Yes, they extracted from the zip first. This error also happens when you copy a client, whether zipped or not, from one Mac to another. I'm looking at Dejan's latest post, and assuming that this is what is happening.
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...