Error 1011 often occurs when Adagio attempts to create a temporary file that already exists (and shouldn't). Often this is the result of a system crash and temporary work files were not cleared successfully.

Adagio uses temporary files for Stock Transfers, Adjustments and Shipments so that you could be in the middle of transaction entry, close the function, and then come back to it with losing your work. (note that in Accpac Plus IC, if you close stock transfers without posting, you lose the entries). The name of the data file is ICSTKTMP.DAT; make sure it doesn't exist if you haven't made any entries. Also make sure it doesn't have the 'read-only' attribute set on the file (which would be the case if you restored data from a CD-ROM).
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To answer your question about stock transfers and the audit lists, indeed Adagio and Accpac Plus write to different files. This is because Adagio can transfer items to a different item number (not just to a new location) and Plus cannot recognize that level of functionality. Thus the necessity for separate audit reports.