Could no get needed resources for application id=-337 Unable to connectto server

I am having trouble getting my application objects to run on my Windows
XP workstations when using the secure system user and unsecure system
user options. If I select the "Run normal" options, there are no
problems. However, this isnt an option as most of our users are not
administrators locally.
The error message is:

Setup Resource Status
Could not get needed resources for application [object name] to be
launched (id=-337).
Problem: Unable to connect to server.

If I take the UNC path from the "Path to executable file" field and
paste it into explorer, the executable runs fine. I have tried both the
server name and the IP address of the server in this field with no luck.
I verified that the NAL service is running. The users that the object
is associated with have all the needed permissions to the folder where
the executable is located. I have tried moving the application object
itself to the same context as the users it is associated with with the
same results.
We are running Zen works version 3.2.
Thanks