(1) I've never seen an error that looks like that, but if you post your question over on the QLS forum, Clark will help you.

(2) The QL200 uses custom software for programming through a proprietary device configuration, so no other software will work with it to load HEX files, however you can use something like the PICKit 3 through the ICD port to bypass the onboard programmer and simply use the board to develop against it's large collection of onboard hardware. I use this method to automate the development process a little or to use devices not supported by the QL200.