After instrumenting with FailSafe, the Failsafe.frm and Failsafe.bas are not added to the project. This can prevent the project from compiling and/or running.
In most cases, this problem is caused by Visual Basic not reading past the first block in the .vbp file for included forms and modules. At present FailSafe adds the includes for the form and module to the end of the project. If other VB 3rd party tools have modified the project file by adding additional blocks, the includes will not be found. The solution is to cut the include lines from the end of the project and add them to the end of the first block.
These are what the two lines look like. Substitute your path for the one below.