Just came across this today on a staff machine. When they tried to use indesign it would crash almost immediately. I then logged in under a local account and tried to use any of the Adobe Creative Suite products, all of which showed this error straight away.
I rebooted, reseting the PRAM and running /sbin/fsck -yf. No changes were made to the operating system and Adobe CS 5 still came up with this error, so the problem wasn't here.
I read up on it and it looked like it has something to do with licensing. I finally logged in as Root and tried all the Adobe products, and IT WORKED!
After running this it worked on all local logins.
Coincidentally, when the staff member logged in and ran indesign, it crashed straight away (no error). After this the error 16 occurred on all logins!! So it was something with her account which much change something somewhere. I shall look into this!