Issue
You try to run LMBind on a physical machine but it reports an error indicating it cannot be run in a "Virtual Environment".
Discussion
There are two things that may be happening.
Interfering Software
The LMBind utility checks to ensure the Windows environment does not permit multiple, concurrent user logins (not screen-sharing, but separate Windows User logins). This prevents multiple virtual servers from being 'bound' to the same physical machine. This means you cannot use some remote desktop software on the binding computer nor can this computer be the host for virtualization (if you are using the 'bare metal binder'). Check the computer to ensure there is no virtualization enabling software installed.
LMBind Defect
If you are sure that this machine is a physical machine and there is no virtualization software running on it, you may be suffering from a defect in the original LMBind provided by our vendor. The vendor has since released an update which you can get here:
https://downloads.oncenter.com/Downloads/lm/lmb111210.zip
Extract these files, then replace the LMBind fileset you are using with the updated fileset (there are three sets, they are named the same as originals, their file date is 5/2014, though). If after using the updated files, the system still reports the same error, you will need to choose a different physical machine to act as binder because the binder has identified some component or software on the machine that could compromise its security.