"Invalid data format in the project_name log" - how to fix?

I am running distrubuted tests using windows VM's.  The tests run fine on my local machine using TestComplete, but when I start the tests using TestExecute on my VM, I get an alert indicating "Invalid data format in the project_name log."  I click OK, the test runs fine, but how do I stop this alert form happening?  



By the way - I went to this page, http://support.smartbear.com/viewarticle/63012/, And this answer was particularly unhelpful :-)