Right-click on Hal's system tray icon, click on "General Options", then click on the "Speech Tab". If you do not want to use speech recognition uncheck the speech recognition box and this error will go away.
If you do want to use it click on "Select SR Engine" and select an engine and speaker. Then click on "Microphone Settings" to go through the microphone setup. Then click on "Training" to go through training. After this is done speech recognition should work and you should no longer receive this error.