The error message you are seeing only happens with the workgroup being used prohibits access to Control Panels. PC Exchange patches the Disk Init package, and it loads the new package from the control panel file. However, At Ease patches prevent the Finder from opening any control panel when access to control panels is disabled.
WORKAROUNDS
===========
Here are some workarounds to prevent this error dialog.
* Enable control panel access in the workgroups that must have PC Exchange
  access.
* Launch any application and insert the DOS formatted disk while that 
  application is in the foreground. When you quit the application, the
  disk is still mounted on the desktop (in the Finder).
* Add PC Exchange to the workgroups (as an item) that must have PC
  Exchange access.
* Place an alias to PC Exchange in the Apple Menu Items folder. This
  allows access to PC Exchange if other Apple Menu Items are allowed
  (another option in the Menus pane of the workgroup setup dialog). This
  alias does not appear in the Apple Menu while in the Restricted Finder, 
  but still allows a DOS formatted disk to be mounted properly.
This article appeared in the 17 January 1997 issue of the Information Alley.