NVIDIA HOST GPU?
We believe error is related to a recently released driver update for NVIDIA GTX GPUs.
NVIDIA GTX Driver Version 397.31 is reported to be buggy, and is causing errors for Parsec users hosting games.
You may be able to resolve this issue by restarting your host computer, or installing an older NVIDIA Driver.
NOT AN NVIDIA HOST OR NOT RUNNING DRIVER 397.31?
You are probably trying to use Parsec on Windows in Directx9 Mode, but you either do not have a client device that supports Parsec (AKA Pre-2006) or you are on Windows 7 and have not installed your graphics driver.