This error is caused by restoring system configuration data (the "System Information" soup) from Newton 1.x OS devices. In Newton 1.x OS, the paper size was specified as 'letter', in Newton 2.x OS paper size is specified as 'eightByEleven'. With this new paper size, NewtWorks cannot get the correct margin information when opening, causing the error.
Workaround
1) Tap Extras
2) Tap Prefs in the Setup drawer
3) Tap Locale
4) Change the Paper Size to A4
5) Close Locale
6) Tap Locale
7) Change the Paper Size back to U.S. Letter
This resets the paper size information.