I found the problem. The game looks for the STE chipset. If I have Hatari or my MiST set to the MegaSTE chipset, the game will not start up and you get the error.
The STe can still be at 16Mhz and the game will start. The key is to have the chipset set to STE instead of MegaSTE.
If the game cannot be changed to detect the MegaSTE chipset as well, the easiest answer for me is to load my configuration that is set to an STe. That runs the game perfectly.
I did want to say that the game is very well done. The controls are responsive and the game feels like it could be the arcade version of Pacman.