Dennis Wilkinson (author of the OT/PPP Strip program mentioned here last week as the cause of 1010 errors in the Chooser) writes that, in his experience, the error is more often seen in the Finder than in the Chooser. Further: "It is in fact the only reproducible bug I've had reported with the module. The problem is that the PPP Commands scripting extension, which I poll for PPP state information, and whose code is already loaded into memory, calls OT/PPP's libraries (Apple's, not mine) while are loaded dynamically. The error 1010 is being reported to let you know that there simply isn't enough room to load those libraries (on some systems, possibly as a result of RAM Doubler being installed, the module fails in a slightly different way.) Increasing the heap allocation of the application that fails will correct the problem."
Dennis suggests using Finder Heap Fix to increase the size of the Finder's memory allocation, if you have this problem in the Finder. In that regard, David DeJonghe recently wrote me that using Finder Heap Fix to go beyond 256K to 768K more generally speeded things up for him in Mac OS 7.6. So this Fix file, which was designed primarily to fix a problem in System 7.5.5 that Apple had supposedly fixed in Mac OS 7.6, may none-the-less still be useful in Mac OS 7.6.
As for the 1010 error in the Chooser, one reader (sorry, I lost the name) reported that you could use the Snitch technique (described in Troubleshooting System 7.5.5) to increase the memory allocation of the Chooser. This solved the 1010 error problem for him.
Meanwhile, Dennis says he is working on a fix to OT/PPP Strip module itself that will eliminate the need for these other work-arounds. (Thanks also to Mark Brooks for providing information relevant to this item.)