That’s an error from the Fume SDK that indicates that the Fume sim was unable to be loaded into memory. Are you able to render this scene using Fume without Krakatoa? Also take a look at the Task Manager while the render starts, and check if you are running very high on memory.
P.S.
Are you on a 32 bit system?
Does rendering in Default Scanline cause the same, or similar error? Do Krakatoa PRT Volume objects work correctly (They are somewhat similar)? Can you merge the Fume sim into a fresh Max scene and see if the error persists. Also please record your memory usage settings while the render is starting, but before the error is shown (if you can).