Something's getting lost in translation here, that's for sure as your second quote doesn't necessarily equal what I had originally stated. :-)
"The event fires only for the functions in this script."
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This is not what I had said. :-) Any script in the project that logs an error will fire the event. However, when the event fires, the script that is linked to the event is the code that is executed. So, your thesis is incorrect.
I would suggest you read
http://smartbear.com/support/viewarticle/11118/ as this explains what events are, how TestComplete uses them, and what event handlers can do for you in your automation work.