Check first whether you can insert a document from this desktop application as an embedded object in another application. The necessary menu item is usually 'Insert --> Object'. The application then lists all of the OLE document types. Choose the type corresponding to the desktop applciation. If the insertion fails, the error is in the desktop application itself.

This error has various causes. Often, it is caused by activating certain add-ins. Sometimes, the desktop application is wrongly installed. The error should not recur once you have disabled any add-ins or reinstalled the desktop application.