Hit this error message earlier and noticed that no search engines had the answer so I wanted to share.
When running App Engine from a command prompt or from within App Designer, you get a dialog popping up with
Your security options are set improperly. Please contact your security administrator.
The same error does not popup when you login to App Designer or Query or other 2 tier tool though.
The answer is that somehow you ended up with the
PS_SERVER_CFGvariable set in your current environment and
psae.exeis getting confused as to whether it should be running under the process scheduler or not. Tools like Application Designer don’t get confused because they never run under the process scheduler.