That error occurs because the game cannot find its resources. This usually means the executable is not where it was installed (i.e. someone dragging it to the desktop will break it), or the resources are not where they are supposed to be.
Installing a one user under Windows 7, then changing users can also cause problems.
Easy way to debug it is to physically navigate to the installation folder and check to make sure the following files are all located in the same folder.
aceshigh.exe
models.res
stdshape.res
htdlg.res
ww1snd.res
sounds.res
While you are there, execute (double-click) "aceshigh.exe" and see if the error occurs.